Rumours that Liverpool City Council is about to be put under special measures have been dismissed by the CLG and the Audit Commission. The commission has been working with the council – whose chief executive, Colin Hilton, is pictured – on a special strategic improvement and innovation panel. Following two damning Audit Commission reports which criticised the financial management of the council, a legal and balanced budget is now in place, alongside a medium-term financial strategy, which has been approved by the Audit Commission and the Government Office. Labour has made no secret that it is keen to secure the Lib Dem-led Liverpool City Council. Last month, communities and local government secretary, Hazel Blears, used the Labour Party conference to name and shame ‘Lib Dem Liverpool' as ‘officially the worst council in Britain'. Lib Dem Cllr Richard Kemp angrily denied the rumours, stating someone was ‘trying to stir up trouble'. He blamed Labour for ‘being very selective to justify smears' about the council and councillors in the run-up to the local elections. ‘This is totally untrue and I know there is no intention to put us in special measures,' he told The MJ. ‘If there was, we would have a monitoring board undertaking assessments. Instead, since the ‘poor' CPA ratings, Liverpool has put in place an improvement and innovation panel, which the Audit Commission has had input in to. ‘This is not the way it treats a council which is about to be put in special measures.' He added that the council's benefits service had a four-star rating and was improving, and children's, adult's and environmental services all had three stars and were improving. An Audit Commission spokesman confirmed the council was making ‘good progress' in a number of areas after actively seeking help. The MJ was unable to get hold of anyone from the Labour Party in Liverpool to comment.