Government intervenes at council with £1.8bn debts

Four ministerial envoys will work with Warrington Council over the next five years after concerns were raised about the local authority's debt levels and commercial activities.

The government earlier this year said it planned to intervene at the Labour-run council, which has built up £1.8bn of debts mainly linked to its commercial investment programme.

The envoys will be expected to "support, challenge and advise" Warrington Council, which will retain responsibility for improving the way it is run.

Council Leader Hans Mundry said: "We look forward to working alongside them positively and receiving their expert challenge and support."

An inspection was ordered by the previous Conservative government and the subsequent "best value" report was published in May.

While it recommended sending commissioners in to run parts of the council - something which previously happened at nearby Liverpool City Council - the government instead opted to deploy ministerial envoys.

Envoys are accountable to the government and have certain powers which can be used if deemed necessary.

They include scrutiny of decision-making, the ability to appoint, dismiss and manage senior officers' performance, and limit further borrowing and spending.

The government has appointed Sir Stephen Houghton as ministerial envoy, with Harry Catherall, Carolyn Williamson and Phil Brookes being ministerial envoys with powers to exercise functions.

In a written statement, Local Government Minister Jim McMahon said he was "confident" the "necessary" package would address Warrington Council's issues.

He said: "The success of Warrington is important both for its own benefit, and that of the region with its critical role in devolution which offers significant opportunities to drive up growth, improve transport connectivity and build new homes, as well as raising living standards for its population."

A letter to the council's chief executive from the Ministry of Housing, Communities and Local Government said Secretary of State Angela Rayner "recognises the expertise of these appointees and is confident that they will be key to helping resolve Warrington Borough Council's issues as quickly and effectively as possible".

The letter also said there was the "clear expectation" that Warrington Council would retain responsibility for making improvements.

The measures require the council to prepare an improvement plan within six months, begin recruitment for a permanent appointment to lead the improvement work, to review all of its investments in the first two years and to "fully co-operate" with the envoys.

The council is to pay £1,200 a day for the lead envoy and £1,100 for the other envoys.

The measures will remain in force until 31 July 2030, unless the government decides to amend or revoke them.

Warrington Council said it welcomed the envoys' appointment.

Mundry said: "We have always seen the appointment of envoys as a supportive step. Knowing who our envoys will be provides us with important clarity as we continue to work at pace on driving forward our improvement plan.

"It's our commitment to keep working relentlessly, as we have done in recent months, to address the recommendations that have been made to us through the 'best value' process.

"Our envoys will help us to strengthen this work, and we look forward to them joining us."

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