Liverpool City Council: Report finds more contract failings

The council must get its house in order over contracts, says Mayor of Liverpool Joanne Anderson

Liverpool City Council's failure to renew contracts across a number of services could cost it millions of pounds, a report has revealed.

The report, seen by the BBC, said failure to act on 12 contracts which had expired or were close to doing so "compromises" getting the best value.

It follows in the wake of an error that saw its energy bill increase by £10m.

An opposition councillor said the Labour-led authority was in "its last chance saloon".

The Local Democracy Reporting Service said the report to cabinet, to be discussed at a meeting on 24 June, was commissioned by Mayor Joanne Anderson to review of all procurements by the council following the error over the energy costs.

It found five contracts have already expired and a further seven contracts are on the brink of expiration in departments ranging from children's services to IT.

Among them is one for community-based help for people at risk of homelessness.

Its five-year £8m contract expired in December 2020, but it has continued as the council is legally obliged to support vulnerable people and ending the service would leave 300 at risk.

Formalising a new contract to June 2023 is expected to cost a further £1.5m.

'No time'

The report said the "late decisions" on contracts "compromises the council's ability to assure best value", adding that "in a large number of service areas over a number of years, the council has not procured services to deliver best value and in some cases without the minimum legal compliance".

Liberal Democrat councillor Kris Brown, the chairman of the council's audit committee, said the authority was "in the last chance saloon" and fears "further commissioner intervention" similar to that which was imposed on to the city by the government in 2021.

He told BBC Radio Merseyside that the fact "this wasn't brought to attention much earlier" showed "the culture that is embedded in Liverpool City Council".

He said the cabinet now had to "either renew these contracts very quickly or risk a huge disruption in vital services", adding there was "no time" to see "if these provide best value for the council".

Ms Anderson said the council "must get its house in order over contracts".

She said it has "learnt lessons" from the energy contract issues and had made improvements to "help ensure these errors are avoided in future".

She added that there had recently been senior appointments "and everyone is determined each contract is procured efficiently, in a timely manner and delivers best value for the people of our city".

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