On 18 January 2022,1 announced to the House that the Secretary of State was minded to intervene at Sandwell Metropolitan Borough Council (“the authority”) and to appoint Commissioners to take over functions associated with the governance and scrutiny of strategic decision making, and of those relating to the appointment and dismissal of statutory officers.
At the same time, I sought views on how best to improve political stability in the authority’s leadership and to move towards a four-yearly election cycle.
These proposals followed the publication of a “Value for Money Governance” review by the authority’s external auditor, Grant Thornton, issued to the authority on 3 December 2021. The review makes 45 wide-ranging recommendations, three of which are statutory recommendations, and in my view provides considerable evidence that the authority has failed to comply with its best value duty over a number of years. This is a requirement set out in the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, with regard to a combination of economy, efficiency and effectiveness.
The Governance review paints a deeply troubling picture of mismanagement and of ineffective scrutiny and accountability arrangements at the authority. While the review recognises the recent progress made under the Interim Chief Executive, Kim Bromley-Derry CBE DL, it also notes how, historically, senior officers and members have been unable to make the changes required to move away from the past.
While the Secretary of State is encouraged by the “green shoots” of progress described in the report, his view is that the risk of progress stalling or slowing is significant. He believes the proposed intervention is necessary and expedient to secure compliance with the best value duty.
As part of my announcement in January, I invited the authority to make representations about my proposals to formally intervene on or before 11 February 2022.
Representations were received from 15 parties: the authority, its Conservative Councillor Group, an independent Councillor, three MPs, eight residents and one residents’ group. With one exception, all the representations supported the intervention and the proposal to appoint Commissioners.
The authority welcomed the support of the Department with its improvement, and stated that it looked forward to working with Commissioners and developing a clear improvement plan. In relation to elections, the authority confirmed that it is in the process of developing an action plan which includes consultation and engagement activity.
The Conservative Group and the independent Councillor pledged to work with the Commissioners. Residents were universally supportive of the intervention and keen to see real improvement in the authority’s services.