Liverpool City Council ‘still lacks housing strategy’ as government plans takeover

The decision follows an independent review into LCC’s activities last year, which highlighted a number of failures with its housing strategy, which reflected poor value for taxpayers, left sites undeveloped and saw Section 106 agreements omitted.

The highly critical Best Value report by inspector Max Caller was commissioned by the government as part of increased scrutiny on the local authority following the arrest of its mayor Joe Anderson.

The report uncovered weaknesses in the Labour-run council’s housing company, Liverpool Foundation Homes, which was supposed to build 10,000 homes but is winding down after recording hundreds of thousands of pounds worth of losses. 

The council also failed to renew its energy supply contract earlier this year, adding a potential £16m to its bill. 

When the government first intervened in LCC in June 2021, it appointed four commissioners to oversee the council’s highways, property and regeneration functions. 

In the latest report they said the council prepared an interim housing statement and has begun to re-engage with registered providers operating in Liverpool.

“There has been a lack of capacity to address the housing challenges facing the residents of Liverpool, and it is a requirement of the revised structure that these shortfalls are addressed,” the commissioners said. 

They also said the council has started to adopt a more commercial approach to land disposals, moving away from agreeing nominal rent levels. 

The commissioners said that over the next period, they expect to see a review of property services at the council and a completed and resourced property improvement plan. 

They also expect LCC to undertake a full stock survey. 

Lead commissioner Mike Cunningham said: “Our report outlines the challenges the council has faced over the past year in their improvement journey and highlights some of the areas that need urgent improvement. 

“We welcome the secretary of state’s decision to expand the directions and the creation of the strategic futures panel. 

“We have confidence that the council can now address these challenges.”

LCC mayor Joanne Anderson said she was “extremely disappointed” with the report.

“A huge amount of work has been taking place over the last 12 months to change the systems, processes and culture of the organisation.

“It is not an overnight fix, and the report is no reflection on the hard work and teams and individuals across the organisation,” she said, adding that the report was written in June and since then there has been further progress at the council. 

She said: “The cabinet and I, along with the senior management team, are determined to turn this organisation around and deliver best value and social value for our residents.”