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BBC News
09-07-2025
- Business
- BBC News
Warrington: Government intervenes at council with £1.8bn debt
Four ministerial envoys will work with Warrington Council over the next five years after concerns were raised about the local authority's debt levels and commercial government earlier this year said it planned to intervene at the Labour-run council, which has built up £1.8bn of debts mainly linked to its commercial investment envoys will be expected to "support, challenge and advise" Warrington Council, which will retain responsibility for improving the way it is Leader Hans Mundry said: "We look forward to working alongside them positively and receiving their expert challenge and support." 'Accountable' An inspection was ordered by the previous Conservative government and the subsequent "best value" report was published in it recommended sending commissioners in to run parts of the council - something which previously happened at nearby Liverpool City Council - the government instead opted to deploy ministerial are accountable to the government and have certain powers which can be used if deemed include scrutiny of decision-making, the ability to appoint, dismiss and manage senior officers' performance, and limit further borrowing and government has appointed Sir Stephen Houghton as ministerial envoy, with Harry Catherall, Carolyn Williamson and Phil Brookes being ministerial envoys with powers to exercise a written statement, Local Government Minister Jim McMahon said he was "confident" the "necessary" package would address Warrington Council's said: "The success of Warrington is important both for its own benefit, and that of the region with its critical role in devolution which offers significant opportunities to drive up growth, improve transport connectivity and build new homes, as well as raising living standards for its population." 'Improvement plan' A letter to the council's chief executive from the Ministry of Housing, Communities and Local Government said Secretary of State Angela Rayner "recognises the expertise of these appointees and is confident that they will be key to helping resolve Warrington Borough Council's issues as quickly and effectively as possible".The letter also said there was the "clear expectation" that Warrington Council would retain responsibility for making measures require the council to prepare an improvement plan within six months, begin recruitment for a permanent appointment to lead the improvement work, to review all of its investments in the first two years and to "fully co-operate" with the council is to pay £1,200 a day for the lead envoy and £1,100 for the other measures will remain in force until 31 July 2030, unless the government decides to amend or revoke Council said it welcomed the envoys' said: "We have always seen the appointment of envoys as a supportive step. Knowing who our envoys will be provides us with important clarity as we continue to work at pace on driving forward our improvement plan."It's our commitment to keep working relentlessly, as we have done in recent months, to address the recommendations that have been made to us through the 'best value' process. "Our envoys will help us to strengthen this work, and we look forward to them joining us." 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.
The Independent
09-06-2025
- Business
- The Independent
Senior council leader ‘confident' of more spending review support for the poor
A senior Labour figure in local government has said he is 'confident' the spending review will boost council funding as he called for further measures to support people struggling in poorer areas. Sir Stephen Houghton, leader of Barnsley Council and chairman of a group of councils largely in deprived areas in the North and the Midlands, also expressed concern that capital investment could be channelled to big cities and not 'left behind' places. Rachel Reeves announced that nine million pensioners in England and Wales will receive the winter fuel payment this winter, in a £1.25 billion U-turn on the Government's previous position. Speaking exclusively to the PA news agency, Sir Stephen welcomed the move and other recent measures such as the extension of free school meals. But he said a broader package of initiatives aimed at supporting low income working families is now necessary and would represent an 'important political statement'. In a statement released by the Special Interest Group of Municipal Authorities (Sigoma) in response to the announcement on winter fuel payments, Sir Stephen said: 'I am confident that the Chancellor will continue in this spirit and use the upcoming spending review to provide further financial support to councils who are working hard to deliver for residents in challenging times.' When asked to explain why he is confident at a time when revenue spending will be limited by factors such as slow growth and high borrowing costs, he said: 'Speaking to ministers (in the Ministry for Housing, Communities and Local Government) and speaking to advisers in the department. 'I have spent 14 years lobbying for this unsuccessfully with the previous government. 'I am confident because (local government minister) Jim McMahon is a former council leader, and he gets it. 'We have got to make sure that he doesn't get overruled by the Chancellor and the Prime Minister who are getting pressure from other parts of the country. 'I think he will hold his nerve.' Sir Stephen identified reducing transport and social rent costs as measures which would benefit the community in Barnsley and elsewhere, adding they should be part of a 'comprehensive' support package. 'That will do the Government good, both politically and by helping the people that need it the most,' he added. On capital investment, Sir Stephen warned of a 'real danger' that the Treasury will prioritise infrastructure spending on big cities to secure a 'maximum return'. 'Civil servants are telling ministers that the problem with that is it provides the least political return because these cities are already voting Labour,' he said. Advocating an alternative approach, Sir Stephen added: 'Left behind communities deserve to have economies that function effectively, and you can get growth there as well if you invest. 'These are the places that have been leaving Labour. 'Why can't you have a decent quality of life if you live in Bolton, Bury, Blyth or Grimsby? 'Those communities are the ones that, for 30-odd years, have seen the big cities be the be-all and end-all. 'That leaves you with Brexit. 'It leaves you with, from a Labour perspective, Boris Johnson majorities in red wall seats. It leaves you with riots last year. 'It leaves you with Reform (gains in the local elections) just a month ago.' 'We need a short-term package of measures to say 'we are bothered' – life is hard,' he added.
