Government sends commissioners to take control of Spelthorne council's finances
Government-appointed commissioners will oversee Spelthorne Borough Council’s finances and operations after concerns about £1 billion in debt and poor governance.
Spelthorne Borough Council has been taken over by government-appointed commissioners after concerns about £1 billion in debt and serious failures in the way the council is run.
The council, which serves residents in Surrey, has borrowed £1.096 billion, making it the second most indebted district authority in England. The government said the debt level is “exceptionally high” and amounts to more than £10,000 for every person living in the borough.
The commissioners will be in place for up to five years and will have powers over the council’s governance, financial management, property decisions, and the recruitment of senior staff.
A government report said the council had shown “persistent and systemic” failings and had made little progress despite warnings. It also said council leaders showed “optimism bias” and did not understand the full risks of their decisions.
The Secretary of State for Levelling Up, Housing and Communities said: “Spelthorne Borough Council has failed to comply with its Best Value Duty, as there has been a failure to make arrangements to secure continuous improvement in the way its functions are exercised.”
Inspectors found that the council had invested heavily in commercial property without a clear strategy or long-term plan. They said the council relied too much on property income to fund local services and did not have a proper plan to repay its borrowing.
They also found serious problems with financial controls, including poor records, late accounts, and weak risk management. There were reports of poor relationships between senior officers and councillors and a lack of clear leadership.
The commissioners will now take over key decisions and begin a review of council services and finances. The team will be led by a chief commissioner with experience in local government.
Council leader Councillor Joanne Sexton said: “We are committed to working hand-in-hand with commissioners to restore Spelthorne’s financial health and to deliver the services our communities rely on.”
Deputy leader Councillor Chris Bateson added: “We have no ‘Plan B’. Our plan is to work with commissioners, continue reducing our borrowing, and deliver the best possible value for our residents.”
The commissioners will provide regular updates to the government during their appointment.