Wirral Council's properties 'worth £9m less' than when local authority bought them

Investment properties purchased by Wirral Council have seen a drop in value of more than £9m since their acquisition, an auditors' report has shown. The portfolio includes notable assets such as Birkenhead's Vue Cinema and the Europa Centre, both of which had already seen a decline in value.

On January 6, auditors Grant Thornton published their annual report on the council's financial accounts, ahead of an emergency meeting scheduled for January 14. The audit firm made a legal recommendation and identified three major weaknesses within the local authority, making two key recommendations and a further 12 suggestions for improvement.

According to the report, the council is legally required to publicly respond to these recommendations under the Local Audit and Accountability Act 2014 as it is "in an extremely challenging financial situation with significant financial pressures creating budget overspends combined with low levels of reserves."

This week, the council announced plans to seek a £40m bailout from the government over the next two years, stating it would likely face bankruptcy without this support.

In response to the report, Wirral Council's leader, Cllr Paul Stuart, stated that the council is "implementing detailed and stringent measures to address the financial challenges," adding: "Years of underfunding and the rising costs and demand for social care services have outstripped available funding necessitating major changes in operations, including some very difficult and unwanted decisions to ensure the council can provide its statutory services and look after and take care of our most vulnerable residents.", reports