A key report into Wirral Council's attempt to escape its budget black hole has praised the authority, but it carried grave warnings for the future.

Last November, Wirral Council was slated in two independent reports into the local authority which included strong criticism of elected councillors and officers, stating that the 'prevailing culture' at the council prior to the pandemic had been to avoid difficult financial decisions, meaning the council's emergency reserves have been dramatically reduced in recent years.

Following the reports, the council approved a £20m cuts package in February, which included the authority withdrawing funding from Woodchurch Leisure Centre, nine libraries and two public golf courses. Even though there are ways local groups can secure the future of these services, the cuts have put their futures in doubt.

Another move made after last year's reports was the creation of an Independent Assurance Panel, made up of senior members of other councils as well as Wirral Council's leader, the leader of the Conservative opposition and the council's chief executive, to make sure the authority solved its major budget problems. Its first report into the council's progress, which panel members who are part of Wirral Council have not been involved in developing, has now been published in a big moment for the local authority.

The panel's key findings are mostly positive for the council. One section of the report read: "In short, the panel applauds the progress made to date on the 2022/23 budget, the local plan, streamlining governance, the move to all-out elections, the development of a comprehensive member development programme and some improvement in member and officer relationships."

But the report, to be discussed by Wirral Council's most senior committee called Policy and Resources on Wednesday, June 7, contains major warning signs for Wirral Council. One element of this is all the areas the panel said the council still needs to improve on.

The report added: "However, much remains to be done as highlighted in this report, on finance, regeneration, transformation and ongoing improvement. The panel will be closely monitoring progress on the items raised in this report and will expect to see significant progress by our next report in November 2022."

Another element of this is the panel's prediction that the council will have a £14m budget gap next year. For many, this year's round of cuts was hard enough, but having to find another set of savings could be a huge challenge for the council and a source of huge anger for residents who are already suffering from this year's cuts.

It must be said this figure could change between now and early next year, when the 2023/24 budget will be set, but the picture could be even more challenging for the council given the high inflation levels across the economy. While the report praised councillors for working together on this year's budget, it provided yet more warning signs for the politics of the local authority going forward.

The report read: "Additionally, following the May local elections it is clear that cross party working remains very fragile. Though I am reassured by receiving a letter from all group leaders stating their commitment to working collaboratively. It will be important that mutual respect is given by all and to all to ensure this strengthens."

One key area in which politicians will need to work together is community asset transfers (CATs). This is the process through which local groups can save services like Woodchurch Leisure Centre and the nine libraries the council is withdrawing support for.

On this, the report added: "In particular it will be important to ensure that work is undertaken, at pace, to support the possible creation of [CATs] and if these are not possible for the budget to be balanced regardless." Next year, all 66 Wirral councillors will be up for election.

Some believe this could lead to a wavering in the council's commitment to the cuts that will get its budget back on track, as parties look for popular stances that can gain them votes at this huge set of elections. The report added: "It will be essential that all politicians of all parties, despite the electoral process, address the seriousness of the 2023/24 budget position and that they learn from the 2022/23 budget process to ensure a balanced budget for 2023/24.

"Failing to address this would be a serious step back for the council in all they have achieved to date."

On the report, Cllr Janette Williamson, the Labour leader of Wirral Council, said: "I'm pleased that we are making good progress, and we have come a long way from where we started. I'm also pleased to have been re-elected as leader unanimously, and I welcome that cross party support.

"So, while I acknowledge the panel's comments about cross party relations, described as 'fragile' - a clear reference to the lack of unanimity for the budget - we are working towards a healthy, collegiate and robust relationship between all parties.

"It is incumbent on us all to ensure that we demonstrate to the panel our commitment to working together going forward. In short, I'm determined to continue to improve the culture across the whole council, and am heartened by the steps being taken in the right direction."