Sandwell: Two Years After Government Intervention… Governance Is RED Again

Sandwell: Two Years After Government Intervention… Governance Is RED Again

If you remember, Sandwell Council spent two years under Government intervention after a damning governance review concluded the authority had failed its Best Value duty.

Commissioners were sent in.

Taxpayers paid the bill.

Politicians promised reform.

The council told everyone the corner had been turned.

Well… fast forward to 2026, and buried inside the latest Audit & Risk Assurance Committee papers is a rather inconvenient little detail:

Sandwell’s governance has been rated RED by the external auditor.

Yes — RED.

Not green.
Not amber.
Not “improving.”

Red.

Which, for those unfamiliar with council-speak, is auditor shorthand for:

“Houston… we have a governance problem.”

And that’s not coming from bloggers, campaigners or opposition councillors.

That’s coming from the council’s own external auditors.

A Quick Refresher: Why Commissioners Were Sent In

Let’s rewind.

Back in 2022, the Government intervened in Sandwell because of serious failures in:

• governance and decision-making
• scrutiny and accountability
• member-officer relationships
• organisational culture

In short: the council’s internal systems for running itself properly had broken down.

Commissioners were installed to fix the mess.

By March 2024, ministers declared the council had improved enough to leave intervention.

The message from the council leadership was clear:

“We’ve learned our lessons.”

So Why Is Governance Now Rated RED?

According to the external auditors reviewing Sandwell’s finances and governance arrangements, several significant weaknesses remain.

Among the concerns raised:

Accounts Governance Problems

Auditors highlighted weaknesses in the council’s ability to produce its annual financial statements on time.

For a £300-plus million public authority, that’s not a minor administrative issue.

It’s a basic governance function.

Internal Audit Recommendations Not Being Implemented

Auditors also warned that the council must strengthen oversight of internal audit actions.

Translation:

When auditors flag risks, those fixes are not always happening quickly enough.

That’s a classic warning sign in organisations where governance discipline is slipping.

Oracle Finance System Issues

The council’s Oracle Fusion financial system — the software responsible for managing finances — still has unresolved problems.

Auditors say Sandwell must:

• resolve outstanding system issues
• optimise the system
• conduct a post-implementation review.

ERP system failures can cause chaos in:

• financial monitoring
• procurement controls
• reporting accuracy.

Hardly reassuring.

Oversight of the Children’s Trust

Auditors also warned the council needs a more collaborative and effective approach to overseeing the Children’s Trust.

Given the national history of councils getting into serious trouble over children’s services governance, that recommendation should raise eyebrows.

Dedicated Schools Grant Pressures

The council is also under pressure from the Dedicated Schools Grant, particularly relating to SEND funding.

This is a growing financial crisis across local government.

But councils with weak governance are far more vulnerable when those financial pressures bite.

The Bottom Line

Let’s not dance around it.

Two years after government commissioners packed up their bags and left Sandwell Town Hall…

The council’s governance is still rated RED.

The same governance systems that triggered intervention are still being flagged as weak by external auditors.

That should concern every taxpayer in the borough.

Meanwhile… Complaints Are Climbing

Recent customer feedback reports reveal:

• Stage 2 complaints up 75%
• Housing complaints skyrocketing
• Housing response performance at just 44% compliance

And when complaints reach the Housing Ombudsman, the council frequently loses.

None of this screams “model council.”

The Election Timing Is… Convenient

The next meeting of the Audit & Risk Assurance Committee takes place on:

Thursday 2 April 2026 – 6:00pm

This will be the last meeting of the committee before the local elections.

So the final governance meeting before voters go to the polls will be discussing…

a RED governance rating.

You couldn’t make it up.

The Question Voters Should Be Asking

When ministers ended intervention in 2024, the promise was that Sandwell had turned a corner.

But two years later, auditors are still raising red flags.

So here’s the question:

If governance has truly improved…

Why is it still RED?

And perhaps more importantly:

If commissioners were sent in to fix governance failures…

why are those same warnings appearing again today?

One Last Thought

Local government only works when the public trusts the people running it.

Trust depends on transparency.

Transparency depends on strong governance.

And right now, according to the council’s own auditors…

Sandwell’s governance is RED.

Voters may wish to bear that in mind when they next head to the ballot box.

Next meeting:
Audit & Risk Assurance Committee
Thursday 2 April 2026 – 6:00pm
Sandwell Council

#Sandwell #SandwellCouncil #SandwellPolitics #LocalGovernment #CouncilWatch #AuditCommittee #Governance #Accountability #FollowThePower #LocalElections #Transparency #CouncilFail