Labour councillor suspended after foodbank ‘fraud’ report

A Liverpool Labour councillor has been suspended after a foodbank was placed under investigation over alleged “misappropriation of funds”.

Colette Goulding had the whip removed by the party after online newspaper The Post reported private companies under the umbrella of The Big Help Group, founded by her partner, had received large sums from Knowsley Foodbank.

A government letter, obtained by The Post and seen by the BBC, stated the Serious Fraud Office (SFO) were investigating the charity over alleged “fraud, mismanagement and misuse of funds”.

Ms Goulding did not respond to requests for comment but her partner, Peter Mitchell, told the BBC neither had “ever acted inappropriately”.

Knowsley Foodbank ceased operating earlier this year.

The Labour Party said it would not provide an “ongoing commentary” on internal party matters but sources confirmed Ms Goulding, who represents West Derby Muirhead, had been suspended pending an investigation.

The SFO said, in line with longstanding policy, it would neither confirm nor deny any ongoing investigation.

The Charity Commission had confirmed in September it had opened an investigation into the foodbank after being contacted by one of its grant providers.

It was also already investigating charities linked to Mr Mitchell, including the Big Help Project, which went into liquidation last year.

The letter, sent from the Department of Environment, Food and Rural Affairs (DEFRA) to Knowsley Foodbank on 29 August, informed the charity it was reversing a decision made in May to award a £173,000 grant.

It said since then the foodbank had not submitted documentation as required, but also added: “It has come to the Department’s attention that Knowsley Foodbank is the subject of an ongoing investigation by the Charity Commission and the Serious Fraud Office which we understand is focused on potential mismanagement, fraud and misappropriation of funds.

“It appears that the investigation commenced in June 2025, but difficulties faced by Knowsley Foodbank were not disclosed to the Department at any stage of the grant application process, nor was the investigation disclosed during the grant funding period.”

The foodbank had also been in receipt of monthly payments of up to £50,000 from Knowsley Council, which were halted this summer leaving it facing a financial black hole and leading to the resignations of its management team.

Kay Davies, a trustee of the foodbank, told the BBC she had realised there were issues with its finances in July, the first time she had any involvement with its day-to-day operation, and raised a serious incident report with the Charity Commission.

She said: “I have been completely transparent and I have nothing to hide at all.”

The Big Help Group, a collection of charities and companies involved in poverty reduction, homelessness and social housing, began facing financial difficulties this year.

Mr Mitchell, also a former Liverpool councillor, said neither he nor Ms Goulding had ever been spoken to by the police or SFO about anything related to the Big Help Group or the foodbank.

He told the BBC he had never been a trustee of Knowsley Foodbank and said it would be inappropriate for him to comment on any investigation into the charity.

“I am immensely proud of the fantastic and life changing support delivered by the Big Help project and its partner organisations over almost 15 years,” he said.

“It was seen as an exemplar organisation and received over 25 national and local awards over that period especially during COVID where we fed literally thousands of people who were trapped in their homes during lockdown.”

Mr Mitchell said the difficulties facing the group were caused by a “London based finance firm” which he said he had reported to regulatory bodies for alleged fraud, and against who he is involved with ongoing civil court action.

“I totally refute any suggestion that either myself or Ms Goulding ever acted inappropriately at any stage and we are currently taking legal advice over the recent outrageous allegations against us,” he added.

Mr Mitchell said any money paid from the foodbank would have been for services provided by various companies within the Big Help Group.

The reports in The Post claimed payments totalling £195,000 had been transferred from Knowsley Foodbank to companies under the banner of the Big Help Group – which last year attempted a takeover of Southport Football Club.

One such company, Big Help Group Ltd, was founded by Mr Mitchell in 2022 and had Ms Goulding listed as a director until her resignation in 2024.

Both Mr Mitchell and Ms Goulding were declared bankrupt in May this year.