GOVERNMENT appointed commissioners are set to oversee Warrington Borough Council’s finances following a damning Best Value inspection report into the debt-ridden council.
The government inspection, started under the last Conservative government has now concluded under the Labour government, with local Tories saying they were vindicated in their opposition and what many residents had long suspected – that Labour-run Warrington Borough Council “is bankrupt in all but name as a direct result of years of financial recklessness, secretive dealings, and wilful incompetence.”
Local Tories say “The Best Value Inspection Report, published today (8th May) lays bare the true scale of Labour’s economic vandalism, confirming that the council has amassed £1.9 billion in debt, one of the highest in the country fuelled by a spree of risky commercial investments, many of them outside the borough and with no benefit to local people.
They say in short the report delivers a damning verdict:
• £1.9 billion in debt, with unsustainable borrowing and high exposure to short-term interest rate risks.
• No external audit since 2018 and five years without financial scrutiny, hiding the full extent of Labour’s failures.
• Repeated warnings from auditors, experts, and government bodies which Labour all ignored or dismissed.
• A culture of secrecy, where councillors lacked the expertise or will to scrutinise, and officials made major decisions behind closed doors.
• Evidence of potential breaches of government borrowing rules and statutory investment guidance.
• An urgent call for government commissioners to take over control of leadership, finances, and commercial activity.
The Warrington Best Value inspectors submitted their Best Value Inspection report on 31 January 2025. The report notes some positive features at the Council, such as children’s services and public sector partnerships and community engagement, however documents serious concerns across a number of areas which ministers consider amount to failings by the Council of its Best Value Duty under Part 1 of the Local Government Act 1999.
The report states: “The council is in a very difficult position and its risks are made more acute by a gap of several years without an external audit. These serious problems mean the council faces a significant undertaking to improve.
“We have considered carefully the different options for intervention and support which the council requires. We have been mindful that the council has not fully implemented previous recommendations from external reviews about its commercial programme and governance. There are signs that the council is beginning to reduce its debt but the messages we have received during the inspection on this issue have been inconsistent and the council’s revenue budget position has deteriorated and is now very serious. The recent change in focus on debt reduction has been driven by the need to close the revenue budget gap facing the council and by the fact of the inspection taking place and following the MHCLG/CIPFA Business review. That is why the inspection team is not confident the council’s challenges will be addressed without external support.
“Our recommendations are challenging for the authority, but we believe they are necessary to secure the scale of change that is needed. We hope that this report plays a role in securing this improvement for local residents.”
The report goes on to state: “In summary, the council shows a number of weaknesses in meeting its best value duty in the areas of leadership, culture, governance and use of resources. The council is in a very challenging position with a complex high-risk borrowing and investment programme; no agreed strategy for dealing with it; likely reductions in income and increases in costs of the programme; an increasingly precarious revenue budget position with rapidly diminishing reserves, which might be found to be overstated when the audit of the outstanding years commences; and a lack of track record in delivering large scale savings at pace. All this increasingly puts the sustainability of the council and its services at risk.
In the short-to-medium term, there may be some relief in the form of discounts from prematurely repaying Public Works Loans Board (PWLB) borrowings and taking these to revenue over a 10-year
period, but should borrowings continue to increase, these will add significantly to both volatility and short-term interest costs. The inspection team is not confident that without external intervention, the council has the will and capacity to make the necessary changes.”
A list of 12 recommendations includes: “The Secretary of State should consider appointing commissioners to oversee the council’s improvement and recovery. The council’s response to previous external reviews and its limited capacity do not give confidence to the inspection team that the council acting alone recognises the severity of the issues it faces and can make the necessary changes. The commissioners should possess expertise in local government leadership, financial management, commercial leadership, and transformation. Their powers should be defined as broadly as possible to enable comprehensive oversight and intervention.
Commenting on the findings of the report, the council’s sole remaining Tory Cllr Rob Tynan said: “This Best Value report vindicates years of warnings from the late Richard Buttery and Bill Roberts who brought this issue to the attention of Warrington residents. The Conservatives in opposition have long fought for more scrutiny over these deals and warnings over the debt. We tried to get the council to be open and transparent, but this was rejected by the Labour and the Lib Dems in Warrington Borough Council. For too long, Labour shut out scrutiny, misled the public, and doubled down on reckless borrowing.”
“This is Labour’s legacy: debt, denial, and disgrace. Warrington was turned into a financial casino by Labour. Gambling public money on vanity projects and speculative property deals in Manchester and beyond. All the while, council tax rose, services strained, and residents were kept in the dark.
“The report also confirms what the late Richard Buttery and the late Bill Roberts had said all along: that Labour’s incompetence was putting the council and its residents at risk. Their efforts to hold the Labour administration to account were ignored at the time. Now, they have been proved right.
“The Conservatives have always maintained that these investments were done behind closed doors, without proper governance, transparency, or due diligence. This is not just bad management, it is a systemic failure of leadership, accountability, and basic financial sense.
“It is now time for the Secretary of State to act. We fully support the immediate appointment of government commissioners to take over leadership, finances, and commercial decision-making in Warrington.”
“The Labour MPs for Warrington must now show where they stand. Will they defend this failed Labour administration? Or will they finally stand up for the people of Warrington, admit their party’s failure, and support the clear recommendation of the report?
“This Labour administration has lost all moral and financial authority. It must go.”
In response Warrington Borough Council issued the following statement: “The report, following the inspection process, is critical of how the council operates across a number of areas, with particular regard to previous commercial decisions, leadership, governance and strategic financial management.
“As a result, while we will retain control of primary decision-making and our services will operate as usual, we expect to be supported by government-appointed envoys to make further improvements. We will remain responsible for leading on this important work, using guidance and support from the envoys, as we implement an improvement and recovery plan.
“The government is now welcoming representations on the inspection report and its proposed intervention package, by Thursday 22 May.
“We welcome the government proposal to appoint envoys. This is a supportive decision and will help us to deliver the changes needed.
“We are very sorry to our residents and communities that we have not been able to provide sufficient evidence to the inspection team through this process, to demonstrate best value in everything we do.
“In the immediate term, we would like to reassure you that the outcome of this report won’t have an impact on your ability to access and receive the important day-to-day services that you need and expect. We also have a legal, balanced budget for the 2025/26 financial year with appropriate cost controls in place which are already working, and we do not require any exceptional financial support from government.
“We believe we have good foundations to build on at the council. Our workforce is determined and motivated to make a difference, the standards of our day-to-day services are good, and we are proud of our work to support and enhance Warrington’s strong and thriving local economy.
“We’re keen to take the opportunity to embed improvements in the areas identified, with the support of the appointed envoys, so that ultimately we can demonstrate that we are a council that is well-governed, has effective leadership, works openly with residents and communities, and uses resources effectively. To this end, it is our utmost priority to demonstrate these improvements to our residents and businesses.”
The Secretary of State is expected to review the report and announce formal intervention in the coming weeks.
A full copy of the report can be READ HERE
