Former council leader Mike Storey who is now a Liberal Democrat Member of the House of Lords has written to a Government Minister asking him to consider intervention into Liverpool City Council.
In his letter Lord Storey suggests two main areas of concern. Firstly, that the Council is approaching the setting of a budget with the Director of Resources on long-term sick leave and with no Chief Executive.
Secondly, because research by Liberal Democrat Councillors has shown that the debts of the Council have gone up by 35% in less than 18 months and if the Council finances the Everton deal will expand to around £1 billion which he describes as a “staggering Carillion style level of debt”.
The full letter suggests that it creates a “supervisory committee” as it did in Birmingham. The letter details a number of concerns including Mayor Joe Anderson recent police interview under caution relating to financial irregularities at Lancashire County Council.
The letter states that the current level of debts that the council has equates to £2,500 per household. According to the information provided, the loan provided for Bramley Moore Dock will take the councils total debts to more than £1 Billion.
The level of debt that the city council owns has increased by 35% in less than 18 months and this figure does not take in to account the loan that will be provided to Everton Football Club for Bramley Moore Dock.
Lord Storey concludes “I am deeply worried about this level of debt which will be the equivalent of almost three years of the council’s revenue budget.
As I indicated in my opening paragraph I believe that intervention in the Council is now necessary.”