Birkenhead Town Centre Update

22 August 2025
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At the request of the Director of Finance, Wirral Council’s Internal Audit team has conducted a review into the contract governance of the Birkenhead Town Centre Movement Scheme.  

The aim of the report is to understand the key reasons why the town centre project is forecast to significantly overspend, and delivery has been delayed; including the extent to which various officers were aware of issues as they unfolded.

The report has identified a number of weaknesses in how the contract was prepared and overseen and noted a number of issues which contributed to this, including:

  • Frustration among officers as to how the scheme has been managed internally
  • Unclear division of responsibilities between the Regeneration and Highways departments
  • Limited capacity in Regeneration and Highways to deliver a scheme of this size and complexity
  • High turnover of staff within Regeneration
  • Unrealistic timescales for delivery

The report highlights that many of the issues arose due to pressures to meet grant funding deadlines and notes the need for transparent and accurate reporting at all levels of project governance. 

Key issues at the outset of the project included that, prior to the start of construction works on site, it was known that the project had a £3.5m-£4m budget shortfall and that the design was incomplete, and the level of project management for the contract was insufficient given the project’s scale and complexity.

The report stresses that decision-makers must receive a clear, unambiguous picture of the risks and the implications.  Without such reporting, boards and committees cannot make fully informed decisions. 

Acting Chief Executive, Jason Gooding, said: 

We can see that the cost of the Birkenhead Town Centre Movement Scheme was over budget before it had even begun, and from an initial £12 million will now be potentially over £24 million to complete, and significantly late as well.   

My priority is to restore confidence in the Council’s ability to deliver meaningful regeneration that benefits the people of Wirral. That means ensuring robust governance, realistic planning, and full accountability at every stage of delivery. We are already taking decisive steps to get a firm grip on the wider regeneration programme and to place it on a sustainable and credible footing.

Council Leader, Cllr Paula Basnett added: 

As I have said, this situation is completely unacceptable. Residents must be confident that public money is being managed responsibly, transparently, and with full accountability. Our communities deserve regeneration that is ambitious, but also well-executed and genuinely beneficial.

I am determined to ensure that is exactly what happens. The coming weeks will mark a clear turning point for this Council. While the challenges are significant, knowing the scale of the problems is the first step to putting them right and that work has already begun.

This is about restoring trust, improving delivery, and making sure that every pound we spend delivers real value for the people of Wirral.

Chair of the Audit and Risk Management Committee, Cllr Helen Cameron said:

The Internal Audit report has highlighted several areas of concern regarding the governance and management of the Birkenhead Town Centre Movement Scheme, and it is important that the committee fully consider the findings.  

We now need to see a detailed action plan to ensure that the lessons learned will be embedded across all levels in the Council to strengthen its project oversight, governance processes and to improve delivery and accountability in future schemes.

The report is due to be presented to members of Wirral Council’s Audit and Risk Management Committee when it meets on September 2

The report to the Audit & Risk Management Committee accompanying the Internal Audit review requests members to note the report and agree to receive the completed action plan for consideration at its 4 November 2025 meeting.

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