Government set to extend statutory intervention at Slough until November 2026 with best value duty still not met

Ministers are set to extend the statutory intervention at Slough Borough Council by a further two years.

A letter to Slough’s interim chief executive, Will Tuckley, said the Minister of State for Local Government and English Devolution, Jim McMahon, had concluded that the local authority is not meeting its best value duty and that issuing new directions would provide the council with ongoing government support via commissioners.

The Secretary of State for Housing, Communities and Local Government, Angela Rayner, and McMahon were therefore minded to exercise their powers under section 15 of the Local Government Act 1999 and set a new end date for the intervention of 30 November 2026.

The intervention into Slough dates back to December 2021, when commissioners were sent in after a damning external assurance review highlighted serious financial and management failures.

The extension of the intervention, which was due to end next month, comes after receipt in April of the fifth report of the commissioners and an update letter in September.

The update letter said the commissioners recognised that there had been some progress “albeit from a very low baseline”.

It added that throughout much of the intervention there had been issues with the quality and consistency of senior officer leadership, “although this has improved recently following a large recruitment exercise”, and this had hindered progress.

The update letter, which recommended a two-year extension - “to allow for measurable progress and clarity on the council’s future” - and the issue of revised directions, highlighted:

• Encouraging signs of improvement to organisational leadership. “Under the guidance of a new experienced interim Chief Executive and enhanced Corporate Leadership Team, has come a sense of commitment to driving change, openness, and transparency. The Corporate Leadership team are showing signs of working more collegiately and are developing a more strategic approach to improvement. Staff are feeling more confident in their leaders, but the situation will remain volatile for some time with organisational capacity and resilience remaining a significant issue across the board and no clear workforce plan yet in place.” Recruitment of several remaining key positions is underway.
• The council being in no overall control. The Conservatives provide the leader and the cabinet, relying on the support of the three Liberal Democrat councillors to do so. “Political leadership is generally providing a more positive environment for officers to work, but the political situation at Slough remains very fragile. There is scope for development in terms of officer and member engagement to drive a more strategic approach to place and recovery.”
• In terms of the financial situation, Slough with its strategic partners, is undertaking a balance sheet review which is providing greater assurance on historic accounts. However, this is yet to be finalised and there is some degree of risk as the final years of outstanding accounts are produced and subject to audit. “The discovery phase has given more clarity to where contingent risks are, and as a result, the future financial position has become more serious.” There remains a budget gap within the medium-term financial strategy.
• A cornerstone of the council’s debt recovery strategy is the asset disposal plan, and whilst there has been some progress, a combination of market conditions and impairments make this challenging. “This has meant that the original target is unlikely to be achieved increasing the risk of ongoing financial sustainability.”
• Steps have been taken to develop initial thinking on a future operating model, but further work is needed to bring this into a coherent model that aligns with the medium-term financial strategy and with a robust transformation plan. “Delivering wholescale organisational transformation is notoriously difficult. Slough’s challenging financial position and limited pool of staffing resources heightens the risk that they will struggle to design and deliver a new model in the short to medium term.”

Turning to the pace of progress, the update letter said: “The scale and uncertainty of financial issues, combined with historic organisational and political leadership challenges have hindered pace. Momentum for change will continue to be hampered by financial constraints within the council. This situation continues to challenge the resilience of members and officers tasked with leading the recovery.”

The commissioners said there remained several significant risks, including that Slough needed to demonstrate that it could become sustainable and resilient without exceptional financial support. “This means living within its means, driving down costs, reducing debt and delivering the required asset disposal target, which is proving challenging.”

It also said the operating model would need to demonstrate that the council is financially viable and is able to meet its statutory obligations.

Capacity and capability across the council remains a significant challenge and may make it difficult to achieve the momentum need on transformation.

With Slough under no overall control, there is a notable risk of political instability which was “distracting” to the council.

In his letter to the interim chief executive, Max Soule, Deputy Director – Local Government Stewardship and Interventions at the Ministry of Housing, Communities and Local Government, noted that the commissioners’ report and update letter were “clear that the council still requires substantial improvement before it can demonstrate it is meeting its Best Value Duty and would benefit from continued support”.

Soule said: “While some progress has been made since the start of the intervention, there are still a substantial number of areas which require further improvement, there remains volatility in the Council’s financial position, and there is not yet a Target Operating Model that aligns with the medium-term financial outlook.

“A robust and resourced transformation plan that aligns to the Target Operating Model is needed to drive change, which must be underpinned by strong leadership and a comprehensive workforce strategy to foster and embed cultural change.”

He added that further improvements still needed to be secured relating to risk management, governance, including the scrutiny function and audit committee, evidence-based decision making and partnership working including resident engagement.

“Separately, the progress in children’s social care and SEND services under Department for Education intervention has been noted,” Soule said.

Slough Borough Council revealed that the minister is also minded to appoint a Managing Director Commissioner (MDC) – “a move that has worked well elsewhere” – and that the postholder would have the same roles and responsibilities as all of the council’s commissioners.

Will Tuckley, chief executive, is set to become the MDC for a fixed term, taking on a dual role alongside his chief executive responsibilities for managing the day-to-day operations of the council.

Tuckley said: “The announcement today provides stability for Slough as we work together to improve the council for the good of all in the borough.

“The joint role of Managing Director Commissioner and Chief Executive will provide a stronger link between commissioners and the management of the council to help support the democratic delivery of all we do.”

He added: “The council’s recovery will take time and energy, building on what has been done well so far, so we can face the challenges and recognise opportunities.

“I’m proud to be able to be a part of Slough Borough Council’s improvement and will be working closely with all involved, both within the council and with communities and partners across the borough.” 

Dexter Smith, leader of the council, said: “I welcome the news the government has proposed that the best value intervention of Slough Borough Council will continue for another two years. As council leader, I asked for this, supporting the best value commissioners’ request to continue working with us.

“Ever since forming my administration in May 2023, I have told Slough’s residents and council staff there is no quick or easy way to turn round our council’s fortunes.

“The situation we are dealing with has been years in the making and so it will take years to resolve the debt, to get the council living within its means, and to deliver best value services. Now we have the extra time and help from government to do that.”

Gavin Jones, Lead Commissioner for Slough Borough Council, said: “The continuation of the intervention is necessary at this time to tackle the vast challenges involved in the council’s improvement. It has become clear that much more work is needed to provide stability and sustainability for the council’s operations and finances.

“The commissioner team welcomes the proposal of new government directions for the next two years and the addition of the Managing Director Commissioner role, which I have direct experience of seeing prove effective in another council under intervention.”