The party suffered damaging losses in Thursday's elections, particularly in Oldham and Stockport, but held firm in Liverpool, Manchester and Salford and even managed to increase its majority in Sefton.
Joanne Anderson has been elected to lead the city council, beating off competition from independent candidate Stephen Yip to replace Joe Anderson who resigned from the post after his arrest last December.
Private sector leaders have declared Government intervention into Liverpool City Council’s operations as an opportunity to improve the public-private sector relationship in the city for the “betterment of its people”.
The city council has maintained that it will not pay the former mayor’s legal fees in relation to Operation Aloft after Joe Anderson said he was entitled to the same financial support being afforded to others.
The party has appointed former minister Sir David Hanson to carry out an internal investigation into its role in the failings of the Labour-led city council following a damning report that found evidence of mismanagement and award of "dubious contracts" by the local authority.
The chief executive of Liverpool City Council said measures have been put in place to resolve a plethora of governance failings that sparked an ongoing police investigation and subsequent Whitehall action, and vowed to do a great deal more to improve investor confidence.