Damning reports finds 鈥榙eeply concerning picture of mismanagement鈥

The government is to take control of Liverpool council鈥檚 planning, regeneration, property management and highways departments for the next three years after a damning report into the administration found a 鈥渟erious breakdown of governance鈥.

Communities secretary Robert Jenrick said that commissioners will be sent to intervene at the departments after the report painted a 鈥渄eeply concerning picture of mismanagement鈥.

Joe Anderson 2

Joe Anderson was arrested in December last year as part of an investigation into the awarding of building contracts. He denies any wrongdoing

A government inspector had found a 鈥渇ailure of proper and due process across planning and regeneration, including a worrying lack of record-keeping鈥 at the authority.

Jenrick said that documents had 鈥渟ometimes been created retrospectively, discarded in skips or even destroyed鈥, adding there had been a 鈥渓ack of scrutiny鈥, 鈥渄ysfunctional management practices and 鈥渄ubious contracts鈥 at the highways department.

He said the report had uncovered an 鈥渙verall environment of intimidation鈥 at council operated companies in which 鈥渢he only way to survive was to do what was requested, without asking too many questions鈥.

Acting Liverpool mayor, Wendy Simon and its chief executive Tony Reeves, said: 鈥淭his is a difficult day for our organisation and we take the report findings extremely seriously.

鈥淭he inspector鈥檚 report has highlighted several failings, but there is a collective commitment from both councillors and officers to learn from these mistakes.

鈥淲e would like to reassure all residents and businesses that we will take action to address all of the issues highlighted. We know we need to rebuild your trust.鈥

Shadow communities secretary Steve Reed said the Labour party accepted the report 鈥渋n full鈥 and would hold a review into 鈥渟evere institutional weaknesses鈥. The city sends 14 Labour MPs to the House of Commons and last had a Conservative MP in 1983.

The report, by government inspector Max Caller, was ordered following the arrest of Liverpool mayor Joe Anderson in December last year on suspicion of conspiracy to commit bribery and witness intimidation.

Anderson, who denies wrongdoing and has called the allegations 鈥渁bsurd鈥, was held as part of a fraud investigation into the awarding of building and development contracts in the city.

The investigation, called Operation Aloft, has also seen the arrests of developer Elliot Lawless and council regeneration chief Nick Kavanagh. Neither men have been charged.

Kavanagh was dismissed from his role earlier this week following a week-long hearing by the council鈥檚 appointments and disciplinary committee to deliberate on his position.

A government intervention is considered a last resort and has only happened four times before.

Parts of Tower Hamlets council were taken over by the government in 2015 after elected mayor Lutfur Rahman was found guilty of electoral fraud.