Liverpool's decline 'cannot go on', city business leader says

Mr McKenna said businesses were "frustrated, concerned and pessimistic about where the city is going"

Issues with Liverpool's administration have seen the city go "backwards" as investment "has dried up", a business leader has said.

The city's council has been beset with problems since commissioners took charge of some departments and on Monday, its chief executive stood down.

Frank McKenna, who represents more than 500 firms, said confidence was "so low" and the city's decline "cannot go on".

Mayor Joanne Anderson said the city was on a "transformation journey".

Commissioners were brought in to take charge of some of the council's departments in March 2021, but the council has faced a number of other issues in recent months.

In May, it was revealed an error saw its energy bill increase by £10m and a month later, a report revealed it had failed to renew service contracts to the cost of millions of pounds.

'Major problem'

Mr McKenna, who leads private sector lobby group Downtown in Business, said the city had "gone backwards" in recent years and investment had "dried up".

"The planning department has been in a zombified state for two years, meaning that little or no new developments are taking place," he said.

He said the city's business community, which had "enjoyed a strong relationship with the council... before the commissioners took over, has been ignored".

He added that he wanted "experienced Liverpool personalities" to join the commissioners.

"There are few Liverpool voices within the leadership team now, which is a major problem for the city," he said.

"I have never known a time when business confidence has been so low.

"We are frustrated, concerned and pessimistic about where the city is going."

'Things had to change'

Bill Addy, the chief executive of the Liverpool Business Improvement District, also said he was concerned and wanted see more "collaboration" and "communication".

Mr Addy, who represents about 1,000 city centre businesses, said the private sector "should not and does not have a say in the running of a democratically-elected local authority, yet we would urge stability and security".

"Liverpool has to be seen as a viable for investors, a place they can trust to do business," he said.

"We would urge the commissioners not to treat the city as a closed door, but to recognise that Liverpool is strongest when it works together.

"The city cannot be left to drift with big decisions to be made by business, across all sectors, and investors."

Mayor Joanne Anderson said Liverpool had a "new, refreshed and transparent approach" to business

Ms Anderson, who became city mayor after the commissioners were brought in and pledged to reform the authority, said serious issues were revealed at the council and "the cabinet and I believe that the situation required a significant response".

She said the council began its improvement plan in 2021 and was on "a transformation journey".

"Major reforms and restructures are an important part of that journey," she said, adding: "Things simply had to change - and they still do."

She said she had previously worked with the business community and would continue to do so, but was "proud to be doing things differently than in years gone by, recognising that only listening to the loudest voices usually isn't the best way forward".

"As mayor, I have fostered new relationships with businesses, leaders and investors... who are excited by the city's new, refreshed and transparent approach," she added.

"Whilst it may not be 'business as usual', I'm confident that it is business that is better."