Communities secretary Sajid Javid has announced his intention to send in commissioners to run Northamptonshire County Council following its financial troubles.
Javid told the House of Commons this week that he is proposing the move following a critical report on the financial affairs of the council by government appointed inspector, Max Caller.
Javid said that he is proposing giving reserve powers across all functions of the council if the commissioners consider they are needed.
Javid told MPs: “I have reflected on the contents of the Caller report. It is balanced. It is rooted in evidence and it is very compelling.
“The inspector has identified multiple apparent failures by NCC in complying with its best value duty. Failures on all counts.
“While I recognise that councils across the country have faced many challenges in recent years, the inspector is clear.
“Northamptonshire’s failings are not down to a lack of funding nor because it is being treated unfairly or is it uniquely disadvantaged compared to other councils.”
However, responding to Javid, shadow communities secretary Andrew Gwynne said: “The secretary of state will know that Northamptonshire’s problems have been building over a number of years, and yet the council bragged about its pioneering approach to council services, basically running them as a business operating almost like a plc, according to the former chief executive.
“And it didn’t take long before it became clear that, just like the public sector, the private sector cannot deliver adequate services when there is still too little funding.”
A consultation under section 15 of the 1999 Local Government Act will now take place, which will allow the council to respond to the proposal for commissioners.
A spokesman for Northamptonshire County Council said: “We welcome this announcement and the clarification of the views of the secretary of state and the potential direction of travel for Northamptonshire.
“We view this as an opportunity for a fresh start in our working relationship with the government and the county’s MPs.”
The spokesman also welcomed a proposal by Javid to consult on abolishing the county council and creating a new unitary structure in the county.
Speaking after Javid’s announcement, Rob Whiteman, CIPFA chief executive, said: “Whatever the decision on the shape the reforms take, it is crucial that we learn the principle lessons from the county council’s failure.
“The [inspector’s] report pointed to a culture in its leadership of ignoring clear warning signs.
“This case must therefore stand as a lesson for all public bodies in terms of the need for checks and balances, for robust governance and financial oversight, and for heeding the advice of outside experts.”
