Government to intervene at debt-ridden council

An inspection was ordered into Warrington Council in 2024 after concerns over its debt

Ministerial envoys are set to be sent into Warrington Council over concerns raised about its commercial programme and debts.

An inspection was ordered by the previous Conservative government after criticism of the authority's £1.8bn debt, related mostly 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.

Council leader Hans Mundry described the situation as "a moment of reset" for the authority.

Warrington Council said it welcomed the proposal to appoint envoys.

"This is a supportive decision and will help us to deliver the changes needed," it said.

McMahon said the report had found strengths in the local authority in areas including children's services, public sector partnerships and community engagement.

But 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, and 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".

'Cop out'

The minister said he was proposing an envoy model rather than taking over functions through appointing commissioners to run the council in the way they had been at nearby Liverpool City Council.

Warrington Council 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.

Warrington Council apologised to residents and said it had "good foundations to build on".

"We're keen to take the opportunity to embed improvements in the areas identified, with the support of the appointed envoys, so that ultimately we can demonstrate that we are a council that is well-governed, has effective leadership, works openly with residents and communities, and uses resources effectively."

Hans Mundry, the Labour leader of Warrington Council, said the authority would "not shy away from the hard truths in this report".

"This is a moment of reset for Warrington. With support from the Ministerial Envoys and drawing on external expertise where needed, we will make the changes required.

"We remain proud of our borough, our communities, and our staff; and we are determined to emerge from this process stronger, more accountable, and better equipped to serve the people of Warrington," he said.

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.

He also said the report was "damning" and said that concerns he had raised in Parliament about the authority had been "totally justified".

Sarah Hall, Labour MP for Warrington South, said the council "must change its approach".

"I have challenged the council on these issues and can see some progress has been made. Under new leadership the local authority has changed direction and has already begun reducing its debt position.

"However, there is clearly much more to do.

We should also recognise the serious challenges local authorities have faced over the past 14 years, the significant reductions to funding and the increased demands placed on councils up and down the country.

Like ministers, I will be keeping a close eye on progress and will continue to hold Warrington Borough Council to account, ensuring they deliver best value for our residents."

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.