‘We will leave no stone unturned in uncovering any wrongdoing’
A fraud probe has been launched into a Liverpool contractor’s infamous hotel – but they say they’re 'proud' of the work they’ve done
Dear readers — Another Monday is upon us. We hope the weekend weather didn’t get you down and you’re all bright-eyed and bushy-tailed for today’s briefing. If you do need a pick-me-up, how about Laurence’s weekend read on the uncertain future of Tuebrook’s own Chau’s, fondly known by generations of locals as the greatest Chinese restaurant in the world?
The Post
That’s not the only exciting thing newly published here at Mill Media. We just launched our latest title, The Londoner, with staff writer Andrew Kersley’s investigation into Labour MP Jas Athwal, which revealed he is the landlord of a children's home in London where kids have repeatedly gone missing. Check it out here.
On with today’s edition, which delves into the fraud probe launched into Unite union’s hotel in Birmingham — a building constructed by Liverpool contractors The Flanagan Group.
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The big story: A fraud probe has been launched into a Liverpool contractor’s infamous hotel – but they say they’re “proud” of the work they’ve done
Top line: Liverpool contractors The Flanagan Group said they are “proud” of their work on the Unite union hotel in Birmingham, despite it being subject to a probe by the Serious Fraud Office.
Context: The hotel and conference centre was intended to be an investment for Unite, Britain’s biggest union, which has more than a million members. Initial plans for the space included a four star, 200-bedroom hotel with a conference centre for more than 1,000 people, as well as office space.
The venue began construction in 2016, and was initially budgeted for just over £7 million. Then-general secretary of Unite Len McCluskey hired Liverpool contractors The Flanagan Group — run by brothers Julian and Paul Flanagan — to build it, and awarded the safety contract to former mayor Joe Anderson’s son, David Anderson. This was despite neither having been involved in a project of this scale before.
Soon after construction began, costs spiralled. By the time the hotel was finished, over £112 million had been spent on the project. A later valuation of the venue came in just short of £30 million – less than a quarter of the build cost. In 2021, Sharon Graham replaced Len McCluskey as Unite’s general secretary, and ordered an independent inquiry.
A mystery £14 million? This inquiry concluded there was a £30 million difference between what was paid for the hotel and what it should have cost. The report also referred to a mysterious £14 million which did not feature in Unite’s final accounts, and it remained “a mystery as to how and when this figure had been assessed and then presumably paid”. Now, Unite has said they are attempting to recover money lost, while the Flanagan Group maintains they are still owed fees from Unite.
The probe: Last week the BBC reported that the Serious Fraud Office had launched a probe into the hotel. In a prepared statement, The Flanagan Group told The Post they’ve “had no contact with SFO”, and “do not agree with the suggested valuation” of £30 million.
They said there were many reasons why the building costs increased so much, including “radical changes to design and working practices". They said they provided estimated costs to Unite every two weeks throughout the build period, “so at no time there could be any doubt whatsoever as to what the impact of the changes imposed would be”.
“We cannot comment on any internal Unite political machinations or speculate on the ambitions of the current Unite General Secretary – but we would like to make it clear that this scheme was delivered fairly and should be regarded as an exceptional asset for the Union.”
Bottom line: In a statement issued by Unite, a spokesperson promised general secretary Sharon Graham will “leave no stone unturned in uncovering any wrongdoing that took place". However, as so often is the case with developments like this, it can be difficult to trace such a complex web of finances. For a deepdive into the Unite hotel and its links to Liverpool, listen to this brilliant podcast by Tortoise Media.
Your Post briefing
The family of Elsie Dot Stancombe, one of the victims of the Southport stabbing attacks, have set up a charitable trust in her honour. Writing on the trust’s Instagram page, Elsie’s parents, Jenni and Dave Stancombe, say Elsie’s Story will “make grants to causes in Elsie’s name, the focus of which will be assistance to young people and support for others in the community and across the region. This will include community projects, medical care and support for individuals and families, good causes involving fun, and bringing the community together.” Elsie, seven, passed away alongside Bebe King, six, and Alice da Silva Aguiar, nine, after an attack at a Taylor Swift-themed holiday club on 29th July. The family say the trust will continue Elsie’s "positivity, love for others and energy of life".
Labour have suspended Mike Amesbury, the Runcorn and Helsby MP, after CCTV appeared to show him connecting with voters in an unorthodox way. Initially, a video posted to X seemed to show Amesbury telling a man already lying on the ground, “You won’t threaten the MP ever again, will you?”. Since then, footage obtained by the Daily Mail purportedly records Amesbury sucker-punching the man to the floor and throwing three further punches. He has also had the whip suspended, which means he will sit as an independent in the House of Commons. On Friday, Amesbury had attended an event with Cheshire’s police and crime commissioner on policing and community safety. Clearly not a lot was absorbed…
Local artists will have the chance to design a Beatles sculpture at the Tower Ground in New Brighton to commemorate the town’s tenuous links to the band, who broke up more than half a century ago now. The Tower Ballroom, one of many New Brighton landmarks destroyed in the previous century, hosted the “Fab Four” 27 times, justifying this nostalgic bask in Liverpool’s reflected glory. The competition’s organisers envision a statue at least two metres in height and visible from the Mersey, a counterpart to Liverpool’s own Pier Head monument to The Beatles. Local authorities and firms provided funding for the project after Wirral beat out the five other Liverpool City Region constituencies to become the Borough of Culture in 2024, the second time it has achieved this honour. According to its website, the Borough of Culture has already hosted a grand total of one event on the “Oblong of Dreams” this year, although on closer inspection this appears to just be a link to Birkenhead’s Convenience Gallery website.
Post Picks
🔥Ormskirk Cricket Club hosts their annual Bonfire Night celebrations this Saturday. Head down from 4.30pm to 11pm for a fireworks display and plenty of food and drinks stalls. Tickets here.
📽️On Saturday Bluecoat hosts a film screening of Stolen. The movie reveals how women who had the misfortune to fall pregnant ‘out of wedlock’ throughout the 20th century were treated in Ireland. Over 80,000 unmarried mothers were incarcerated in mother and baby institutions, mainly run by Catholic nuns, from 1922 to 1998. Tickets for the film are available here.
👗The Big Liverpool Flea Market returns this weekend from 11am at Liverpool Metropolitan Cathedral. For £3 entry you can peruse vintage clothes, furniture and wares all afternoon — grab a ticket here.
🎤The American singer-songwriter John Grant has a new album, The Art of the Lie, and he’s returning to Liverpool to play the Philharmonic this Saturday. His 2010 solo debut, The Queen of Denmark, was Mojo’s album of the year, while 2013’s Pale Green Ghosts achieved the same honour from Rough Trade. He’s exceptional live — find out for yourself by booking a ticket here.
Home of the week
We're big fans of this six bedroom house by Waterloo station. It has some beautiful wooden floors running throughout and great tiles in the kitchen. The garden could use a little TLC, but who doesn’t love a bit of a fixer upper? It’s on the market for £400,000.
Recommended reads
This piece from BBC Verify does a brilliant job of tracking how a LinkedIn post by a man in Southport provoked the riots in July.
An article from earlier this year, in The Washington Post, of all places, takes a look at Ron’s Place, the superb example of outsider art discovered in an Oxton flat after the death of its resident Ron Gittins in 2019.
And get swept into the past with Dream of Liverpool, England, a verse reverie published in the November 1956 issue of The Atlantic by now forgotten poet Margaret Mcgovern. Here’s a tercet we particularly liked:
Fire on the hearth, brass tongs, old silver trays,
Moon gilded chimney pots, the starry rays
Around the gaslit lamps of Liverpool…
