TGS


Local Government Best Value (Jim McMahon)

This Government is committed to rewiring the relationship between central, local and regional government, returning power to people and places so that councils and communities can improve public services, drive growth and deliver better outcomes. Local institutions must be strong, with the right accountability, capacity and capability, and this Government is taking the action necessary to support the local government sector in building that strength and driving improvement.

Today, I am updating the House on the steps we are taking in partnership with Slough Borough Council and Bedford Borough Council to support their recovery and reform.

Slough Borough Council

Slough Borough Council has been in intervention since December 2021, and extended in November 2024, with directions due to end on 30 November 2026. On 5 March 2026 the then Minister of State for Local Government and Homelessness commissioned, due to ongoing concerns of the pace of improvement at the Authority, an external review, led by Dame Mary Ney with support from Will Godfrey. The review was to assess Slough Borough Council’s improvement trajectory under intervention and identify what, if any further support is required to drive immediate progress and to put the Council on a long-term sustainable footing.

I would like to put on record my thanks to Dame Mary Ney and Will Godfrey. The report, which I am publishing today, makes a series of recommendations for the intervention, these include:

Embedding a sustainable senior leadership team to drive the Council’s improvement and provide stability, to transition it to a more sustainable operating modelA reset of the Ministry of Housing, Communities and Local Government Commissioner team to an oversight role; adoption of a single Commissioner team with Department for EducationA new, shared approach to political leadership and development, underpinned by the appointment of a political adviserA decision to move ahead with convergence of Slough Children First with the CouncilGovernment support for Slough growth potential, to accelerate housing delivery and realise the opportunity of Heathrow expansion

Subsequently the Slough Commissioners have submitted their eighth report, outlining progress at the Council. While progress has been made in some areas, it remains fragmented, and recovery remains slow, uneven and fragile. The Council remains in a vulnerable financial position, with a forecast £20m overspend, continued reliance on Exceptional Financial Support and the need to closely review their debt repayment strategy to ensure they are managing down their high level of debt effectively. Governance remains underdeveloped, and serious weaknesses persist in key services, including Children’s Services, SEND and housing. Commissioners do not have confidence the Council can sustain improvement without ongoing external support.

I have carefully considered the Commissioners Report, the external led review and other relevant material. I am satisfied that the Slough Borough Council is failing to comply with its Best Value Duty. I am therefore minded to exercise powers of direction under section 15(5) and 15(6) of the Local Government Act 1999 to implement an intervention package that ensures the Council’s compliance with its Best Value Duty.

Proposed package

Having considered the external review recommendations and Commissioners report, I believe ongoing Commissioner involvement is required to support the Council into a place of sustainability and stepping Commissioners back too quickly would carry significant risk, at this stage.

A key lesson we must learn from the last decade of intervention is that progress in one area is too often undermined by weakness in another and our intervention approach across the two departments has been too fragmented to date. Children's services will not be able to secure and sustain improvement while wider weaknesses in leadership, governance, and financial management persist across the organisation. I am therefore minded to refresh the Commissioner team, working to shared DfE and MHCLG objectives, comprising of a Lead Commissioner, Managing Director Commissioner, Finance Commissioner, and a SEND and Children’s Services Commissioner (appointed jointly by DfE and MHCLG) alongside a political adviser to support the Council ahead of, and following, the all-out elections in May 2027. It is my belief that this will provide the Council with the continuity necessary to embed outstanding improvement activity, drive transformation and take forward the external review recommendations.

I envisage the appointment of Commissioners until 30 November 2029, with a review of the progress of the intervention after 12 months.

Slough is a town of significant economic potential, and my Department will continue to work with Commissioners and the Council to harness that potential for the long-term benefit of its residents.

Bedford Borough Council

Best Value Inspection Report

On 10 February 2026, the then Secretary of State commissioned a statutory inspection of Bedford Borough Council and its compliance with its Best Value Duty. Paul Najsarek, Margaret Lee OBE and Tasnim Shawkat were appointed as Inspectors and reported their findings to the Department in June 2026. I am publishing this Report today, and extend my thanks to the Inspectors for their diligent work and to the Council and all participants for their cooperation.

The Report identifies some strengths within the Council, including within partnership working and in supporting the Universal project. It also notes the steps taken in response to external challenge, including an Improvement Plan and independent Improvement and Assurance Panel, but concludes these are not yet sufficient to drive the urgent improvement required.

Overall, the Report documents serious concerns across a number of areas:

On Continuous Improvement: The Report notes that, despite extensive external support and challenge since 2023, the Council has made limited progress in delivering the scale of transformation and change required. The Inspectors “have no confidence that the necessary improvement will be secured without external intervention”.

On Leadership: The Report identifies challenges “in all parts of the organisation – politically and managerially”. Weak leadership and cross-party working has meant it has been unable to “confront its growing financial problems”.

On Governance: The Council’s governance arrangements lack “clarity, grip or discipline needed to support timely and effective decision-making”. Inspectors assess they are not adequate for a council with a directly elected mayoral model operating without overall political control.

On Culture: The Report highlights a “negative culture” characterised by low trust, blame, defensiveness, silo working and weak accountability. Inspectors describe poor member-officer relationships, reports of bullying and misogynistic behaviour that had not been systematically addressed, low staff morale, and blurred boundaries between member and officer roles.

On Use of Resources: The Report identifies “limited and insufficient evidence of action to improve” the Council’s financial position, which remains unsustainable, with persistent overspends, significant shortfalls in its Medium-Term Financial Strategy, limited reserves and growing borrowing pressures. The Council required exceptional financial support to set a balanced budget for 2025/26 and 2026/27.

Compliance with the Best Value Duty

I have carefully considered the Report and other relevant material, including the Chartered Institute of Public Finance and Accountancy’s review (2025), the progress made since Local Government Association’s Corporate Peer Challenge (2023) and updates since the inspection concluded, and I am satisfied that Bedford Borough Council is failing to comply with its Best Value Duty in relation to Continuous Improvement, Governance, Leadership, Culture, and Use of Resources.

The Council must now work collaboratively and at pace to address the recommendations received to date and deliver sustained improvement.

I consider that the Council needs intensive support to achieve this. I am minded to exercise my powers under the Local Government Act 1999 to issue statutory Directions to the Council and nominate Commissioners with expertise in political and corporate leadership, transformation, governance, and finance, and some with powers to exercise specified functions of the Council. My proposal to appoint Commissioners is not taken lightly, and recognises that, as the Inspectors say, the Council has a “limited track record of delivering transformation and change, despite the extensive external support already available”.

The Council would be directed to prepare and agree a comprehensive Improvement and Recovery Plan to the satisfaction of the Commissioners, bringing together the full range of activity required to ensure compliance with its Best Value Duty. Progress against this plan must be demonstrable, with Commissioners reporting to the Secretary of State on progress at six-monthly intervals. The intervention will also strengthen the Council’s capacity to work effectively with partners on major strategic projects, including Universal, helping maximise the benefits they bring to the borough.

My clear expectation is that the Council should continue to lead and deliver its own improvement wherever possible, with the appointed Commissioners providing oversight, challenge and support and exercising their powers to secure improvement. The proposed intervention will be in place for three years but should there be sufficient evidence of progress, powers over functions will be handed back to the Council.

Representations 

I am now inviting representations from the Council and any interested parties, including residents, on the Inspection Report and the proposed intervention package by 28 October 2026.

I will carefully consider all representations and any other evidence received, before deciding how to proceed.

Conclusion 

I remain committed to supporting both councils to secure the sustained improvement needed and deliver better outcomes for local residents.

I will deposit in the House library a copy of the documents referred to, which are being published on gov.uk today. I will update the House in due course.

https://www.theyworkforyou.com/wms/?id=2026-10-15.hcws383.0

seen at 09:57, 16 October in Written Ministerial Statements.