Inspection ordered at debt-ridden council

The council has about £1.8 billion of debt

The government has ordered an inspection of Warrington Borough Council after concerns about its level of debt.

The authority has been criticised for its £1.8 billion shortfall, which is mostly as a result of its investment programme.

An inspector has been appointed to look into the council’s compliance with its obligation to provide best value.

The authority said the inspection would have its full cooperation and it would work "positively, openly and at pace with the inspector".

'Really serious'

The Labour administration had come under pressure from opposition councillors over its investments, which include the ownership of supermarkets in Greater Manchester, solar farms in York, Hull and Cirencester, a BT development being built in Salford and a third share of Redwood Bank.

An energy firm part-owned by the council collapsed in 2022.

BBC research earlier this year also found the authority had one of the highest levels of average debt per resident.

The government commissioned a report into the council's finances, which was completed by the Chartered Institute of Public Finance and Accountancy.

Simon Hoare, the minister for local government, said in a written statement that the review found the council’s portfolio of debt-funded investments was “very large and uniquely complex to a degree that is concerning and puts the council at risk”.

He said there were “clear financial risks” and if these materialised they were very likely to have “significant impact on local residents and some impact on the national public purse”.

In October, another minister's letter to the council said the findings of the draft version of the review were “very serious”.

The inspector is to look at areas including its decision making and scrutiny, the adequacy of the council’s capacity to address the recommendations in the institute's report, and the impact the investment portfolio and its management has on service delivery.

The inspector is set to report his findings by 30 August.

Andy Carter, one of the town's two MPs, has previously raised concerns

Andy Carter, the Conservative MP for Warrington South, said the council’s debt was something his constituents were concerned about.

“I think it’s a really really serious step and decisions like this aren’t taken lightly,” he said.

“This is really serious, Warrington has debts far, far, far in excess of any of our neighbours and I’m really pleased the government has taken action today."

A council spokesman said the authority had already "taken steps to address areas for improvement" and would "continue to identify any learning and further improvements that can be made as part of this inspection process".

He added: "We would like to reassure residents and businesses that this review will not impact the valuable services that you depend upon."