Councillor suspended following report of foodbank 'fraud'

A Labour councillor in Liverpool has been suspended after concerns emerged regarding the management of a local foodbank. Colette Goulding lost the party whip following reports that companies associated with The Big Help Group, founded by her partner, had received substantial sums from Knowsley Foodbank.

A government letter obtained by news outlets revealed that the Serious Fraud Office (SFO) is investigating the charity over alleged "fraud, mismanagement, and misuse of funds." Ms Goulding has not responded to requests for comment, while her partner, Peter Mitchell, stated that neither of them had acted improperly.

Knowsley Foodbank ceased operations earlier this year. The Labour Party confirmed Ms Gouldings suspension is pending an internal investigation. The SFO maintained that it would neither confirm nor deny any ongoing inquiries. Earlier, the Charity Commission had launched an investigation into the foodbank after receiving concerns from one of its grant providers.

The foodbank had also been connected to other charities linked to Mr Mitchell, including the Big Help Project, which went into liquidation last year. Established to combat poverty in the area, Knowsley Foodbank had received a government grant of 173,000, later revoked following the investigation.

The Department of Environment, Food and Rural Affairs (DEFRA) noted that the foodbank had failed to provide required documentation and that the investigation, which began in June 2025, had not been disclosed during the grant process. Monthly payments of up to 50,000 from Knowsley Council were also halted, leading to a financial crisis and the resignation of the foodbanks management team.

Kay Davies, a trustee who became involved in the foodbank in July, reported serious financial concerns to the Charity Commission. She emphasized her transparency and lack of personal involvement in past mismanagement.

The Big Help Group, comprising multiple charities and companies addressing poverty and housing, faced financial difficulties this year. Mr Mitchell, a former councillor, clarified he was never a trustee of Knowsley Foodbank and denied any personal wrongdoing. He highlighted the positive impact of the Big Help Group over the past 15 years, including during the COVID-19 pandemic.

Mr Mitchell attributed the groups financial troubles to a London-based finance firm, against which he has ongoing civil action. He denied allegations of misconduct by himself or Ms Goulding and indicated they are seeking legal advice regarding the claims. Payments from the foodbank were reportedly for services provided by companies within the Big Help Group.

Reports indicate that Knowsley Foodbank transferred 195,000 to companies affiliated with the Big Help Group, which last year attempted to acquire Southport Football Club. Big Help Group Ltd, founded by Mr Mitchell in 2022, listed Ms Goulding as a director until 2024. Both have been declared bankrupt earlier this year.

Author: Benjamin Carter