Government steps in to help run in-debt council

Government commissioners will step in to help run Spelthorne Borough Council

Government-appointed commissioners are to intervene in running a Surrey council with debts of more than £1 billion.

Jim McMahon, Minister of State for Local Government and English Devolution, said the government had appointed officials to oversee Spelthorne Borough Council.

The interventions come after government inspectors expressed concerns over its record of implementing recommendations from external auditors and from the Local Government Association.

Council leader Joanne Sexton said the council was "determined to address the challenges facing the authority" and would work "collaboratively with the commissioners to ensure long-term improvement in the areas highlighted".

Under the intervention, which will last until May 2030, commissioners Lesley Seary, Peter Robinson, Deborah McLaughlin and Mervyn Greer will oversee changes to council services to deliver "value for money and financial sustainability".

Commissioners will be in place until January 2026, at which point their role will be reviewed.

As of March 2023 Spelthorne's debt stood at nearly £1.1 billion.

The authority was found to have the second highest level of debt for a district or borough council in England, after nearby Woking, relative to its size.

A letter from the government to Daniel Mouawad, Spelthorne's chief executive, says the commissioners will aim to close budget shortfalls and reduce the council's "exceptionally high level of external borrowing".

Costs for the commissioners will be met by the council rather than the government, Mr McMahon said.

An inspection of the authority in January found the council had a "culture of optimism bias", lacked consistent leadership, and did not have the awareness to identify issues or areas for improvement.

To some degree the authority had been "blindsided" by the financial situation, the inspection report added.

A council spokesperson added that most decisions would continue to be made by the local authority, but with the oversight of the commissioners.