Neil Wilby Media

Amidst concerning financial challenges faced by neighbouring councils, Kirklees and Bradford, Oldham Metropolitan Borough Council has taken a perplexing approach by withholding information about its own financial outlook. This lack of transparency has raised questions about Oldham’s ability to meet its short and medium-term financial obligations, leaving residents, taxpayers, and the media in the dark.

Despite a request for a press statement submitted on August 9th, 2023 by Neil Wilby, the author of this article, Oldham Council failed to acknowledge the request or provide the sought-after reassurances. The deadline for a response from key figures such as Council Leader, Cllr Arooj Shah (pictured above right), and Cabinet Lead for Finance and Corporate Resources, Cllr Abdul Jabbar (pictured above left), came and went without any communication at all from their press officers.

By law, councils are required to maintain balanced budgets. In cases where budget financing becomes challenging, the Local Government Act, 1972 mandates the issue of a Section 114 Notice. This measure is overseen by a ‘section 151 officer’. For Oldham, this role was previously held by Anne Ryans, the Council’s Director of Finance, who has recently announced her retirement.

A Section 114 Notice imposes restrictions on new expenditures, with exceptions made for essential services, protecting vulnerable individuals, and existing commitments. The Guardian newspaper has reported that multiple authorities are on the verge of issuing such notices unless additional government funding is provided to stabilise the sector.

Kirklees Metropolitan District Council, a close neighbour of Oldham, has sounded a grave warning about its own financial position. Their acknowledgment of substantial financial challenges was directly relevant to the recent press enquiry made to OMBC.

At a meeting on Tuesday, 15th August, 2023, Kirklees paid officers will report to their Cabinet Members that the Council has saved more than £250m since austerity measures were introduced in 2011 by the Conservative-Liberal Democrat coalition, and that the local authority, the 13th largest in the country, has continued to face “funding reductions and increasing demand pressures far greater than more affluent areas with lower levels of relative need”.

Kirklees Council has managed to save over £250m since the introduction of austerity measures in 2011, despite facing ongoing funding reductions and increased demands on services. Rising service demands and a cost of living crisis have contributed to their financial struggles.

Cllr Paul Davies, Cabinet Member for Corporate Services at Kirklees Council, emphasised the need for immediate budget-balancing action given inflation, increased service demand, and the necessity to safeguard vulnerable residents.

“Even though inflation has slowed marginally, prices are still increasing at a rate we haven’t seen for decades.

“Alongside additional demand for some of our most vital services and our need to protect our most vulnerable residents given the cost-of-living impact, we need to take action now to balance the budget.”

Another neighbouring local authority, the City of Bradford Metropolitan District Council, has also faced significant financial strain. After requiring £30m to balance the budget in the previous financial year, the council’s reserves are reportedly on the brink of depletion.

Early estimates predict an overspend of £13.8m on the £453m net revenue budget for the coming year. The Council’s Director of Finance, Christopher Kinsella, has cautioned that the current financial position is unsustainable, calling for urgent national funding reform.

Bradford, like many councils across the country, is grappling with systemic funding issues. The prospect of imminent s114 notices is indicative of a sector in dire need of support.

Notably, both Kirklees and Bradford councils are under the control of the Labour Party, holding comfortable majorities. Kirklees Council recently witnessed the resignation of its Leader, Cllr Shabir Pandor, prior to an anticipated ‘no-confidence’ vote.

Oldham, too, is under Labour control, albeit with a narrow majority. Despite three recent leadership changes, including Cllr Shah’s return to the top position in May, 2023, the Council’s decision to withhold information, from the only journalist holding them accountable, raises concerns about the preservation of democracy in the Borough.

The Leader’s commitments on Friday, 11th August, 2023 are germane to the criticisms levelled at both her and her Comms team: On a day when she might have been working hard, allaying concerns over a huge public interest issue that affects every taxpayer and resident in the Borough, she was on photo-shoots at a play area in Failsworth and a fun cricket match near her home in Glodwick.

Whilst this media strategy might yield short-term tactical gains, it is likely to fail in the longer run, as transparency and open communication remain crucial for the effective governance of any local authority (read more here).

UPDATE: For completeness, a request for a link to the last OMBC report ‘Revenue Budget 2023/24 and 2024/25 and Medium Term Financial Strategy 2023/24 to 2027/28′ to be published, within this article, has been made. It can be found by clicking here. This was presented to Cabinet in February, 2023. It runs to 96 pages and is a mine of useful information, not least that Reserves are being used, Bradford-like, to plug holes in a budget deficit.

Further UPDATE: It has emerged, since this article was published, Cllr Jabbar told Full Council at their last meeting that a new Director of Finance would be appointed before the end of July. That has not materialised and there has been no explanation issued to press or public as to why not.

Anne Ryan’s Deputy is also leaving, but there is no news emerging from the Civic Centre regarding a replacement. Anne is credited, by one of the more perceptive Oldham councillors, with being largely responsible, over the past several years, for her employer avoiding Section 114 measures. 

Another influencer in the Borough has astutely observed that “All is well in Oldham Council when no-one wants to (a) tell bad news (b) listen to bad news”.

Yet another has lamented that, “saying what needs saying rather than what senior paid officers want to hear”, leads to being marginalised and, ultimately, eased out of the organisation.

Little wonder, then, that Oldham has earned notoriety locally, regionally and nationally as a ‘cover-up’ council. With little or no sign the situation is about to change, short of intervention by the Labour Party nationally or the appointment of central government controlled commissioners. A prospect that has left some Labour councillors voicing concerns over the direction in which their local Party is being led.

Follow Neil Wilby on Twitter (here) and Neil Wilby Media on Facebook (here) for signposts to any updates.

Page last updated: Sunday 13th August, 2023 at 09h55

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Picture credit: Oldham Council

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