Cheshire East Council leader created culture of fear, report finds

Michael Jones led Cheshire East Council until 2015

A council leader created a "culture of fear" and used an authority as "his own private entity", a report has found.

Michael Jones was leader of Cheshire East Council until 2015, when he resigned over contracts awarded to a firm owned by his physiotherapist.

Council auditors Grant Thornton's review found his leadership included "bullying and inappropriate behaviour".

Mr Jones said the report was not "fair and accurate" and its conclusions were "regrettable".

The auditors, who acted on behalf of Cheshire East Council between 2014 and 2018, looked into the culture and conduct of Mr Jones, and the procurement processes involving a local company named Core Fit Limited.

The publication of their report was previously been delayed while Cheshire Police investigated possible fraud.

The force dropped its investigation in 2020, stating that there was "insufficient evidence to provide a realistic prospect of a conviction".

At the time, Mr Jones said the "vindictive" investigation was a "politically motivated attack" by his opponents in "collusion" with police.

In 2021, an internal council review into the contracts awarded to Core Fit Limited found a "widespread failure to follow due process".

'Inappropriate tone'

In their report, the auditors said Cheshire East Council, which was created in 2009, had faced a "profound range of difficulties" during the time period, some related to the fact it was a new council.

It said a lack of clearly defined organisational culture and clarity in regards to expected behaviours had laid the ground for what became a "dysfunctional culture".

"As the report sets out, much of this comes down to the poor behaviours of one man at the political head of the organisation, the former leader," it said.

The auditors said Mr Jones was known for developing a "clear and effective focus on the economic advancement" of the area and he had achievements to his name "which should not be overlooked", but he had "sought to run the council in an autocratic style as if it was his own private entity".

The council's chief executive Dr Lorraine O'Donnell said there had been many changes since Mr Jones left

They said he created a "culture of fear" and highlighted "poor behaviours, including shouting and foul language as a matter of course", which set an "inappropriate tone".

They also said the former leader "either disregarded or lacked understanding of the governance structures of local authorities" and had a "lack of respect or consideration" for governance and due process.

They added that the contract with Core Fit Limited was an "example of the dysfunctional environment".

The report said Mr Jones denied he inappropriately set out to advantage the interests of the company's director, but the auditors "concluded otherwise".

In their conclusions, the auditors said the council had not been able to "fulfil its governance responsibilities to the public" and the aftermath of the issues created "significant instability and loss of public confidence" in the authority.

They also said the issues highlighted "a systemic gap in the council's, and indeed the sector's, ability to tackle this kind of member bullying".

"The experience for Cheshire East and for those closely involved has been damaging, but it is clear that the council has done a great deal to move on from this period in its relatively short lifetime," they said.

They added that the "inherent weaknesses" highlighted could create governance difficulties elsewhere in the future and said they hoped the report would "encourage the ongoing debate around the effectiveness of the standards regime for local government and support mechanisms for both officers and members facing the same intractable difficulties".

'Acted in good faith'

In a statement to the BBC, Mr Jones said the report was "not accepted by me as being fair or accurate, not least as it is based on disputed issues and events".

"Having been shown an earlier draft copy, I withdrew from the process as I was concerned about the approach being taken," he said.

"The police thoroughly looked at the misconceived allegations made... and no further action was taken.

He added that the auditors' conclusions were "regrettable".

"I acted during my time as council leader in good faith to address underperformance of the council and the people of Cheshire may like to reflect on the performance as I drove up standards with the position before my tenure and since.

"If they do so, I'm sure they will recognise the forces massed against me by opponents to change and service improvements for the public."

The council's chief executive Dr Lorraine O'Donnell said there had been many changes at the authority since Mr Jones left.

"The report acknowledges these improvements and makes no recommendations for the council for any further remedial action," she said.

"It provides assurance that the council has done a great deal to move on from the period in question."

The report will be discussed at a special meeting of Cheshire East Council.