Northamptonshire county council is to be run by a taskforce sent by ministers as it battles to turn around its chaotic finances.
The stricken Conservative-run council declared effective bankruptcy in February amid a financial crisis and it has since been forced to drain its reserves and sell its new £53m headquarters to balance the books.
For the next three years, the council will have to submit all major financial and governance decisions for approval to two senior commissioners appointed by the communities secretary, James Brokenshire.
Northamptonshire is seen as a test case for how ministers respond to a local authority insolvency. The National Audit Office has warned that up to 15 English councils could go bust in the next few years as cuts continue to bite.
The county has banned all non-urgent spending and pushed through plans for £40m of cuts, including the unpopular closure of 21 of its 36 libraries. More cuts are expected.
The government decision to send in commissioners follows a inspector’s report in March, which called for the county to be scrapped and replaced by two unitary councils. The report identified widespread management failures and lax financial controls at the council.
The council’s former leader Heather Smith, who blamed the council’s predicament on government underfunding, resigned after the report was released and a new cabinet and senior management team has been appointed.
In a written ministerial statement, Brokenshire said: “Action of this kind is rare and is not taken lightly, but I simply cannot ignore the scale of the problems facing Northamptonshire. It is essential residents are able to have faith in their council, particularly in the responsible use of taxpayers’ money.”
He named the commissioners as Tony McArdle, former chief executive of Lincolnshire county council, and Brian Roberts, an accountant and former deputy chief executive of Leicestershire county council. They will be paid £800 and £700 a day respectively to work for two days a week.
The commissioners will oversee the county council until the end of March 2021. Brokenshire said he had not ruled out appointing additional commissioners.
The leader of Northamptonshire, Matthew Golby, said: “We very much welcome the intervention by the government in overseeing financial and governance arrangements at the council as this goes a long way in allaying uncertainty for staff and partners organisations.
“We are very much committed to working with the government to ensure that we deliver the best services for the people of Northamptonshire, while being mindful of providing value for money for the taxpayer.”
