The ACC Liverpool Group, the firm that runs the host venue for the upcoming Eurovision Song Contest, owes the city council £7.1m, it has emerged.

Its outstanding debt includes £2.6m of normal trading balances and £4.5m of aged debt relating to property transactions from the year ending March 2020.

A council spokesperson said the group, which incorporates the M&S Bank Arena and Convention Centre, Exhibition Centre Liverpool and the Pullman Hotel, has detailed ‘a number of options to recover the sums in its business plan'.

The spokesperson added: ‘In line with our risk-based approach to setting reserves, we have prudently set aside a proportion of the money owed until it is paid.'

A review of the ACC Liverpool Group published in December made a number of recommendations for improving the council's governance and oversight of its subsidiary to reduce the financial risk to the local authority.

Managing director of The ACC Liverpool Group, Faye Dyer, said: 'Our trading results continue to recover after a successful return to full capacity live events following the pandemic and our financial performance now facilitates the transfer of further property-related cost obligations to ourselves, reducing future expenditure for Liverpool City Council.

'We are proud to have played a key role in the renaissance of Liverpool since 2008 and we look forward to continuing our positive relationship with Liverpool City Council, boosting the city region's image as a place in which to live, work and invest.'