Local Government secretary Robert Jenrick could send comissioners to take control of the city of Liverpool following widespread corruption allegations, says the Telegraph.
Mr Jenrick ordered an inquiry into Liverpool City Council after the arrest of city Mayor Joe Anderson. Mr Anderson was held on suspicion of conspiracy to commit bribery and witness intimidation.
Joe Anderson was one of five arrested in December, in a sting which included a man from Ainsdale.
Mr Anderson denies all the allegations against him and has not been formally charged. The investigation continues.
Government inspector Max Caller finished his time at Liverpool City Council this week.
Mr Jenrick is expected to make a statement in Parliament this week detailing the findings of the report and any recommendations.
Government seizure of council operations has only been implemented three times in the past 25 years, and never in a location as large as the city of Liverpool.
In 2018, the Government seized control of Northamptonshire council after the local authority went bankrupt. The Government took control of Rotherham in 2015 after cover-up allegations surrounding the sexual exploitation of children, and Tower Hamlets in 2014 after “allegations about governance failures, poor financial management and possible fraud”.