Local Government Best Value

Jim McMahon Excerpts

Wednesday 20th November 2024 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

All hon. Members will recognise the importance of having well-functioning local councils that provide essential statutory services local residents rely upon. Government will continue to work directly with a small number of councils in difficulty, and this should be done in a way that is not punitive and is based on genuine partnership to secure improvements. Today, I would like to update the House on the statutory interventions in Slough and Woking.

Slough Borough Council

On 22 October 2024, I announced to the House that the Secretary of State for Housing, Communities and Local Government, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), was minded to issue new directions to Slough borough council, and that I was seeking representations on a proposal. I also announced that if I implemented this proposal, I would reappoint the current three commissioners, and also appoint the interim chief executive, Will Tuckley, as managing director commissioner.

The proposal was to require the council to take actions that are consistent with the priorities that the commissioners have set for the council; provide for commissioners to continue to be able to exercise council functions relating to governance, finance and appointments; and to extend the timeframe of the statutory intervention until 30 November 2026. This followed the publication of the fifth report from commissioners, which, as I outlined on 22 October, provided evidence that there are still a substantial number of areas that require further improvement at the council, and there remains volatility in the council’s overall financial position. In my view, the report provides considerable evidence that the authority is not complying with its best value duty, as outlined in the Local Government Act 1999 and best value guidance published in May 2024.

Following consideration of the two representations that were received, and noting the support from the council for the proposal and the concerns raised about the pace and impact of the intervention to date, the Secretary of State and I have decided to implement the proposals announced on 22 October and issue new directions to the council, which come into effect immediately and will remain in force up to and including on 30 November 2026. The directions issued on 1 December 2021—updated on 1 September 2022 and 22 May 2023—are revoked with immediate effect.

I am therefore today confirming the reappointment of the current three commissioners, Gavin Jones, Denise Murray and Ged Curran. They will continue to work in partnership with the council to support its recovery. Alongside this, I have appointed Will Tuckley, the interim chief executive, as managing director commissioner. This will strengthen the relationship between the commissioner team and council and support the council to lead its recovery. The three reappointed commissioners have been nominated for the duration of the intervention and the managing director commissioner has been nominated for 18 months.

As with other interventions led by my Ministry, the council will be required to cover the costs associated with the commissioners. The fees for each individual are detailed in their appointment letters, published on www.gov.uk'>www.gov.uk. I am assured this provides value for money given the expertise that is being brought, and the scale of the challenge in councils requiring statutory intervention.

Woking Borough Council

As the House will be aware, in May 2023, the former Secretary of State (the right hon. Michael Gove) announced a statutory intervention in Woking borough council, following evidence of extensive best value failure compiled in an external assurance review. The review detailed the exceptional level of financial and commercial risk to which the council had exposed itself, and concerns regarding the quality of its strategic financial decision making and its commercial dealings.

Historic commercial mismanagement and major governance failures led to Woking borough council accumulating an extraordinary level of debt, far exceeding usual levels of borrowing for a council of its size. This is an extreme position for a council to be in, and will require unprecedented support from Government to resolve. Woking clearly requires a significant programme of change to ensure it is operating to the required standard. I am grateful to the commissioners for working with the council to improve its strategic financial management and governance, and in charting a path to reduce Woking’s debt as far as possible.

On 29 May 2024, the commissioners at Woking submitted their third report. I will be publishing this report, and my response, later today. It is clear from their report that Woking still faces significant challenges in its recovery, particularly regarding its financial position, but I am pleased that the council remains committed to working with commissioners to deliver fundamental change through its improvement and recovery plan. There are lots of obstacles ahead, but I am confident that the commissioners and council have a good understanding of the challenge and are beginning to deliver a robust plan of improvement.

I also join the council in thanking their auditor Grant Thornton for their recent public interest report on Woking’s historic investment practices, which the council will consider later today before issuing their formal response. The council has the full support of the commissioners in addressing the recommendations. I will also be reflecting on the public interest report and what lessons it can provide on the drivers of council failure.

I urge all councils to consider whether they could be doing more to ensure they are delivering the sound decision making that residents deserve, including considering the characteristics of a well-functioning authority as set out in best value guidance.

Conclusion

The Government are committed to working in genuine partnership with councils under intervention to support their reset, reform and recovery, making sure residents have what they need from their local council, including confidence in its governance, financial management and service delivery. I will continue to monitor progress over the coming months and ensure these councils get the support they need to secure sustainable continuous improvement.

I will deposit in the House Library copies of the documents I have referred to, which are also being published on www.gov.uk today.

[HCWS235]