Political reporter Marc Waddington looks at how Merseyside councils fare in this year’s Audit Commission ratings

LIVERPOOL council has lost its embarrassing “one-star” rating in findings released today by the Audit Commission. The city is now rated as a two-star authority and is said to be “improving well”, according to the annual Comprehensive Performance Assessment.

But while Liverpool has improved, most other Merseyside authorities have remained on the same rating, all of them on higher grades than the city.

Sefton, St Helens and Halton have remained on the same four-star scores they received during last year’s ratings and are all said to be “improving well”.

Knowsley is the only other council besides Liverpool to increase its score from three to four, while Cheshire County Council has dropped from four to three.

In April, Cheshire will be split into two unitary authorities for East and West.

Warrington has kept four stars and is improving well, while Lancashire has dropped from four to three.

But it will be in Liverpool where the biggest sighs of relief are heard. Last year’s abysmal one-star rating meant the city was officially “the worst- performing financial council in the country”, a claim that can now be consigned to the history books.

This year marks the last time CPA assessments will be made, before a new grading system is introduced.

Liverpool council leader Warren Bradley and chief executive Colin Hilton said they were delighted the hard work of the last 12 months had paid off, a year which has seen a number of changes within the city’s financial management structure.

Former finance chief Phil Halsall left his post with a reported £500,000 pay-off and the position has now been scrapped.

Cllr Bradley said the Audit Commission had recognised the hard work done to lift the council off the bottom of the pile.

He added that the criticism the council had received from opponents who seized on the previous one-star rating would dissipate following the news.

“I think eight or nine months ago it was damaging, as was the ‘culture tax bombshell line’, claiming we would not be able to balance the books.

“But we have dealt with the issues we faced before and I will say again that we have got major challenges in a city like this.

“Although there are those challenges to face, I believe we have to be brave enough to face them.”