Red Box - Times Online's Westminster blog

Local politics - uglier and worse behaved than Westminster?

Liverpool should be the beacon of Britain this year: the 2008 European City of Culture drawing in 2 million new visitors. Good to see members of the local council rise to the occasion, then.

According to an Audit Commission report released yesterday: "There has been inappropriate behaviour dealing with some officer issues" / "The behaviour of members at Council meetings is poor with personally abusive language used and aggressive behaviour regularly demonstrated" / "Some members said that they would not speak at a Council meeting for fear of being shouted at or ridiculed" / "Members from all parties recognise that the culture of the organisation is not appropriate and affecting capacity."

It suggests that local councillors have even sought outside help - "External support has been secured to address some of the relationship issues". Is the public paying for councillor counselling?

The inevitable consequences: "Undefined budget gaps" for 2008/09 and 2009/10 and a shortfall on Capital of Culture funding of around £20 million. Silly things, too: "There was a proposal to hire accommodation at a cost of £40,000 when there was existing vacant accommodation in City buildings."

This is a Liberal Democrat council (they are holding their Spring conference in the city) with Labour in second place and no Tory councillors. The report's conclusion: "The behaviour of some members is damaging the reputation of the Council."

Why so little concern over £2.7 million of taxpayer's money?

It was, said the woman from the Local Government department, a "regrettable error." A £2.7 million government regeneration grant went to the wrong Newcastle after Whitehall confused the North East powerhouse with Newcastle-Under-Lyme, a Staffordshire market town 185 miles away.

"We assumed it was in recognition of the work we’ve done to encourage business in the borough," said Simon Tagg, leader of Newcastle under Lyme. "We have no intention of giving the money back at this stage."

Meanwhile John Shipley, leader of Newcastle upon Tyne council, shrugged his shoulders. "A year ago officers expressed surprise that we hadn’t got more money under the scheme. Our officers thought we’d got less money than we expected. We queried it and we were told we had the correct sum.”

All just a joke then. But will the money end up in the right place? No sign of it from Whitehall, who may not even have the power to take it back. "We are working closely with the councils involved, and are taking steps to ensure this does not happen again," they said, perhaps not quite contritely enough.