Oldham Council faces Section 5 report over continuing leadership deadlock

The warning was made on Thursday (2 July) to all councillors at the authority, which has been unable to appoint a leader since the May local elections.

The council has now held three meetings in attempts to agree on a leader, but the political impasse remains.

In a letter seen by Local Government Lawyer, the council's Director of Legal Services and Monitoring Officer, Alex Bougatef, reminded members that the authority has a statutory duty to operate executive arrangements in accordance with the Local Government Act 2000.

He also noted that the council must appoint a Lead Member for Children's Services under Section 19 of the Children Act 2004.

Officers are currently relying upon emergency decision-making powers which were not intended to operate over any extended period, he added.

Bougatef said the council had sought external legal advice and held discussions with the Ministry of Housing, Communities and Local Government over the leadership impasse, which suggested the current position “is not sustainable beyond the very short term”.

He said that the longer the council remains without a leader, the greater the legal uncertainty surrounding executive decision-making and the greater the risk that decisions may be challenged.

He also warned that the council's failure to appoint a Lead Member for Children's Services breaches is inconsistent with the Ofsted inspection framework.

Ofsted inspectors place "considerable weight" on whether there is effective political leadership and challenge, meaning there is a risk of governance concerns relating to inspections, corporate parenting responsibilities and political accountability for children's services, the letter warned.

The letter added: "By 15 July 2026, the Council will have had a further two months to appoint a Leader and form an administration. At that point, it will become increasingly difficult to demonstrate that Councillors have taken all reasonable steps available to resolve the position.

"Councillors would be failing to act reasonably, and the Council will be operating unlawfully. Continuing without a Leader and administration will place the Council at significant risk of operating outside the requirements of its governance framework. If this position remains unresolved, it will be necessary for the Monitoring Officer to prepare a Section 5 report as it is not lawful to remain without a Leader and administration."

He concluded: "Every Councillor should therefore recognise that the appointment of a Leader is no longer simply a political matter. It is a matter of legal compliance, statutory governance and the Council's ability to continue operating lawfully."

Adam Carey