Liverpool does not ‘get a say’ on a controversial planned pay increase for government installed commissioners overseeing the work of the city council, according to its chief executive Tony Reeves.
Mr Reeves said that the council is “expected and required” to meet the new, higher rates for commissioner fees set by government.
The chief executive faced questions from members of the council’s Audit Committee last night after news broke that commissioners overseeing the council would have their pay significantly increased.
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The announcement, which was confirmed in a letter in December, means that the council will now pay lead commissioner Mike Cunningham £1200 a day during his time in Liverpool, up from £800 a day previously.
His supporting team of Joanna Killian, Deborah McLaughlin and Neil Gibson will each be paid £1100 a day, up from £700 a day previously.
It was also announced that these increased costs will be backdated to the start of the commissioner intervention in June 2021.
The commissioners were installed in certain departments of Liverpool City Council following Max Caller’s scathing Best Value Inspection report, published last March 2021.
At last night’s meeting, Croxteth Cllr Anthony Lavelle said the decision was “grossly unacceptable” while Cllr Tony Concepcion added: “In terms of best value, I think we should be asking the commissioners, are they providing best value for the city?”
Council chief executive Tony Reeves responded: “All I can say on this is that commissioner’s fees are set by the government. We don’t get a say on that but we are required to make those payments.
“I’m not going to comment further at this stage and we are very clear that those fees are set by the government and we are expected and required as part of the intervention to meet the rates that government has made.
“I believe the reason why they’ve been reviewed is because of rates that have been agreed on interventions elsewhere in the country
“I can’t say any more than that at this stage.”
Fellow committee member Peter Mitchel asked if there was any help that could be provided by government in order to meet the increased costs.
He added: “This is putting intolerable pressure on a city which is already dealing with intolerable pressure.”
Liverpool City Council is tasked with finding £34m in budget cuts ahead of its next financial year.
These cuts will affect numerous aspects of the council’s public services.
Reacting to the news of the commissioner pay rise last night, Mayor Joanne Anderson outlined in a statement that she was “appalled” by the decision.
She said: “The extreme rise in costs for the commissioners is concerning and I’m appalled that the council is being forced by government to meet these costs. It’s hard to justify this as ‘best value’. This comes at a time when the council must make cuts of £34m to our budget.
“We are committed to the council’s improvement journey and the city council has agreed a strategic improvement plan that was developed collaboratively.
“Government need to support the council by funding these increases in the commissioner costs.The government must give the city a fairer funding deal.”
In announcing the pay rises, the Department for Levelling Up, Housing and Communities said the increase was 'in line with' the costs associated with a similar government intervention at Slough Borough Council, which was announced in December.
Audit Committee chair, Cllr Kris Brown, said he will write to the secretary of state on behalf of the committee to “voice our concerns in relation to the pay increase, particularly as the workload is increased on the local authority but the government think it is fine to increase the fees of the commissioners.”
It is understood that a report outlining the changes will come to the council's cabinet for approval next week.
