Liverpool City Council gave contract to mayor's son’s company

David Anderson's company got a contract managing health and safety work when a flyover was demolished

Liverpool City Council awarded a contract to a firm run by a son of then-mayor Joe Anderson, despite it not being on an approved contractors' list.

A government-commissioned report has revealed Safety Support Consultants (SSC) got the deal managing safety work when a flyover was demolished.

SSC chief executive David Anderson said he was considering defamation action in relation to the report's claims.

The government is appointing officials to oversee parts of the council.

Local Government Secretary Robert Jenrick announced the decision on Wednesday, saying a "serious breakdown of governance" compelled him to act.

He told Parliament a "Best Value inspection" of the council had found "multiple apparent failures" and said he was proposing to appoint commissioners to run some aspects of the council.

Inspector Max Caller raised questions about why and how a 2019 contract came to be awarded to SSC, which in addition to not being on the approved contractors list had never before worked directly for the council, according to the report.

Mr Caller's report also said the mayor's "myopic view that suppliers of services must have a Liverpool postcode... demonstrates, at best, a lack of understanding... and at worst, an attempt to stifle healthy competition in tender processes".

Of the awarding of the Churchill Way flyover project contract to SSC, the report said this "exposed the site teams to considerable Health and Safety risk".

"It also increased the commercial risk to the council of budget over run and additional compensation event claims," it added.

Joe Anderson was elected as Liverpool mayor in 2012

The council has been under scrutiny since police began investigating building and development contracts.

Mr Jenrick sent in inspectors following allegations of fraud, bribery, corruption, misconduct in public office and witness intimidation at the authority.

David Anderson was one of the five men - including his father Joe Anderson and Liverpool's former deputy leader Derek Hatton - arrested on suspicion of conspiracy to commit bribery and witness intimidation.

No charges have been brought and all deny wrongdoing as the police investigation continues.

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Referring to the report's findings, David Anderson described the allegations as "false accusations which are slanderous, unfounded, biased, tactical and politically motivated".

"I refute strongly the claims made regarding the experience, payments, contract and work facilitated by SSC on the dismantling of the Churchill Way Flyovers for Amey plc," he added.

"The report regarding SSC is factually incorrect and damaging to the company. SSC was not invited to assist Max Caller in the preparation of the report or respond to the accusations made.

"I am seeking legal advice on defamation and will not be making any further comments regarding this matter at this stage. Evidence held by my legal team refutes the claims made."

The government appointed an inspector to scrutinise Liverpool City Council in December

Joe Anderson, who stepped aside as mayor in December after being arrested, has questioned why the government was taking action against the council.

He said the reality of the situation "does not reflect the dramatic success that we have generated over the last 11 years. With success brings jealousy".

Mr Caller's report also found many people described the atmosphere in the council's regeneration department as "intimidating".

In a letter to Mr Jenrick dated 19 March, the inspector wrote: "It would be my normal practice to include in the report a complete list of people to whom we spoke or received documentation from.

"However, the number of individuals who spoke to us as 'whistle-blowers' or who did not want to be identified, because of concerns about their safety, but who provided information that could be separately verified meant that I concluded that it was safer to not include this information at all."

Mr Jenrick is proposing to appoint the commissioners for a minimum of three years.

He said it was only the fifth time a "statutory intervention" had happened in England, as the move was regarded as a "last resort".