Get the Echo newsletter - it has never been more important to stay informed Sign me up now Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

An accountancy firm auditing Liverpool Council's finances have offered backing to its plan to loan Everton £280m for a new stadium - and revealed details of where the proposals are up to.

In its statutory audit, Grant Thornton has supported Mayor Joe Anderson's plan for Bramley Moore Dock - and insisted that the necessary checks and balances are being put in place to deal with the risks of the project.

The news comes after Mayor Anderson and opposition leader Richard Kemp traded blows about the deal - which will see the council loan the money from government - before passing it onto Everton as part of a commercial arrangement.

And the views of Grant Thornton will offer a boost to the mayor, with the accountants offering a glowing assessment of the plan being put in place.

(Image: Colin Lane / Liverpool Echo)

Interestingly, the audit report also offered an insight into where the project is up to - and what aspects of the deal the council is waiting to hear from Everton on.

The report states: "The City Council continues to work with its external advisers and Everton Football Club to progress a potential new stadium in North Liverpool.

"We recognise that delivery of the scheme would present a major regeneration opportunity for North Liverpool and would have wider associated benefits for the area and for the City as a whole.

"The Council has a track record of delivering complex ‘invest to save‘ projects and considerable experience of negotiating with commercial partners. "

On the hotly debated subject of due diligence, Grant Thornton states: "The Council has obtained external financial and legal advice, including specialist QC advice, as to the legal powers available to it to enter into an arrangement of this nature and the manner in which those powers need be exercised to help ensure the Council remains within legal and regulatory frameworks.

"Specialist advice has also informed the negotiation of terms for the potential loan security, repayment mechanisms to be employed and the commercial structure of any arrangement.

"The Council recognises that this is a high profile project which is understandably attracting attention.

"It appreciates that this is a significant investment of up to £280m of public money where the Council is making a margin over its funding costs and this is acknowledged with the extent of the due diligence which has already been completed and which is continuing.

"Whilst there is an increasing trend for councils to enter into commercial deals that in-effect involve ‘borrowing to invest’ this potential deal is notable in the level of public money involved and the fact that it involves a proposed commercial loan to a high-profile football club."

(Image: Jason Roberts)

The audit report accepts that there are 'considerable potential risks to both the council and the football club' from such a deal but adds: "The Council is clear that any agreement will need to be carefully considered, properly thought through and any decision to proceed taken in a considered manner."

Offering a rare insight into what aspects of the proposal are being discussed, the report adds: "It is important to emphasise that at this stage there is no deal in place, negotiations are continuing and the council is awaiting confirmation from Everton on a range of issues including the capacity, design, planning implications, the cost of the stadium and how the balance of the monies will be sourced for the project."

It adds: "The Council’s senior officer team has kept us informed of developments on the proposal throughout the audit and we have continued to engage with the council.

"Clearly the negotiations are sensitive and elements are commercially confidential however we have engaged with the Council on: Loan security and how this will work in practice, the structure of the deal and how council will protect its position, the vires and legal issues including the detailed advice the council has sought from expert advisers and the assessment of risks associated with any potential arrangement."

(Image: Jason Roberts)

The report supports Mayor Anderson's promise of carrying out a consultation process including cabinet, full council and a dedicated scrutiny panel to advise members when the deal is ready to be scrutinised.

Concluding, the auditors state: "We welcome this development and recognise the council’s senior officer team are continuing to ensure that appropriate due diligence is being undertaken to protect the council’s position.

"From our perspective it is important that the reporting to members includes a full appraisal of the risks associated with the proposed deal before any decision to proceed is taken.

"We will continue to engage with the council on this key area as matters develop."