WARRINGTON South MP Andy Carter has welcomed a Government decision to order a Best Value Inspection into Warrington Borough Council’s £1.85 billion debt.
In a statement today, the Minister for Local Government, Simon Hoare MP, confirmed that the Labour-run Council is currently the most indebted unitary authority in England and will be one of several to undergo a Best Value Inspection.
Warrington Borough Council, who say they will work positively with the inspector, was recently the subject of a review by the Chartered Institute for Public Finance and Accountancy (CIPFA), whose report has concluded that the Council’s large and complex series of investments, funded through borrowing, have put the Council at significant risk. The report also raises concerns with decision-making, governance and oversight at the Council.
In response to the CIPFA review, meetings with the Council, external auditor reports, and the approval and subsequent reversal of a £145 million loan agreement by the Council last July, the Government have concluded that the financial risks are too great and will now intervene to avoid significant impacts on local residents in Warrington.
The Secretary of State for Housing, Communities and Local Government has appointed a Lead Inspector to assess Warrington Borough Council’s governance and financial management. The inspection will focus on the Council’s compliance with the recommendations made in the CIPFA report to control and reduce its debt levels, the impact of the Council’s investments on the delivery of local services, the decision-making process in relation to the Council’s finances, and the capacity and capability across the Council.
The Inspector will also consider the appropriate level of capital risk for the authority under the newly-issued statutory guidance on Best Values Standards and Intervention, which provides greater clarity to local government authorities in England on what constitutes best value, the standards expected, and a clear escalation pathway to intervene in the event of failure to uphold these standards. The Inspector’s findings are due to be reported by the end of August.
Mr Carter, who just last month raised his concerns with Warrington Council’s debt and called for inspectors to be sent in during Prime Minister’s Questions, has welcomed this action from the Government.
He said: “I welcome this necessary announcement, I’ve repeatedly raised my concerns about the £1.85billion borrowing by Labour at the Town Hall because this level of debt puts local services at risk. It is residents who will have to finance the losses that may occur because Councillors are using public money on commercial schemes that carry significant levels of risk.
“Having had the opportunity to read both the CIPFA review and the Council’s response, I’m not convinced that elected Labour Councillors understand the steps they need to take to address the concerns raised, and I’ve seen no evidence that they intend to deal with governance and accountability issues highlighted by Conservative Councillors. It’s also very clear that the nonsense published by Liberal Democrats ahead of the local elections – which dismissed my concerns – was just that, nonsense, and the Government is now taking action.
“An independent Inspector has been appointed to review the Council’s actions and set out a report to the Secretary of State in August, and I look forward to engaging with him in the coming weeks.”
The Local Government Minister’s full statement can be found here: https://questions-statements.parliament.uk/written-statements/detail/2024-05-08/hcws446
A Warrington Borough Council spokesperson said: “The inspection will undoubtedly have our full cooperation, and we will work positively, openly and at pace with the inspector.
“Equally, we welcome the CIPFA review report being made public, following their review in February 2023. We have supported the report being made public since receiving the draft report in September 2023.
“While DLUHC recognises that we have taken steps to address areas for improvement, we will continue to identify any learning and further improvements that can be made as part of this inspection process.
“Finally, we would like to reassure residents and businesses that this review will not impact the valuable services that you depend upon. We will continue to make sure that our day-to-day services remain at the standard you expect and deserve.”
4 Comments
The Warrington North MP seems to be conspicuous by her absence and lack of comment.
A well overdue investigation.
Hans Mundry isn’t having a good start to his leadership is he ?
It’s a matter that needs to be getting the bottom of.
Identify the problem the people responsible for the problem and bring them to buck !
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