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Government to intervene at debt-ridden council

Government to intervene at debt-ridden council

Yahoo08-05-2025

Ministerial envoys are set to be sent into Warrington Council, after concerns were raised around its commercial programme and debts.
An inspection was ordered by the previous government last year, after criticism of the authority's £1.8bn debt which was mostly in relation to its commercial investments.
Local government minister Jim McMahon said the authority was failing to comply with its best value duty in relation to five areas, including leadership, culture and use of resources.
But the government has stopped short of appointing commissioners to take over some functions of the authority, as recommended by a report produced by the inspectors.
The BBC has contacted Warrington Council for comment.
McMahon said the report had found strengths in the local authority in areas including children's services, public sector partnerships and community engagement.
But it highlighted serious concerns in five areas - continuous improvement, leadership, governance, culture and use of resources.
The report said there was "resistance" in the council's response to external challenges and that the inspectors were not confident it had the "will and capacity" to make changes without external leadership.
It also found a lack of strategic direction, members being "highly respectful" of powerful officers with a "defensiveness to internal and external scrutiny".
The council's commercial programme, it said, "lacks transparency" and decision-making was "disproportionately influenced by a small group of officers" and the authority managed a complex investment programme "without a clear strategy or the required expertise".
The minister said he was proposing an envoy model rather than taking over functions through appointing commissioners - which happened at nearby Liverpool City Council - meaning the authority would remain responsible for its improvement but with "support, challenge and advice" from the envoys.
Inspectors had recommended appointing commissioners, saying they did not have "confidence" that the council acting alone "recognises the severity of the issues it faces".
They also recommended the authority should sell some of its commercial assets, introduce a transformation programme and review its own scrutiny committees.
Andy Carter, a former Conservative MP for Warrington South when the inspection was ordered, said he felt the government's choice of ministerial envoys was "a cop out".
"The inspector recommends a commissioner with full powers to run the council and that's what the government should do, particularly as the council have failed on numerous occasions to address the issues that have been raised," he said.
McMahon said he was asking the council and residents for their input on the proposed intervention, which he was seeking to be in place for five years.
See more Cheshire stories from the BBC and follow BBC North West on X. For more local politics coverage, BBC Politics North West is on BBC One on Sunday at 10:00am and on BBC iPlayer.
Inspection ordered at debt-ridden council
Debt-ridden council 'needs panel' to oversee investments
Warrington Borough Council

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