Jason Lowther / Paul Joyce / Philip Whiteman

The arrival of the new UK government looks set to result in a new policy on central government’s intervention powers in local authorities, the third generation of such policies this century.  This article suggests some key lessons from earlier models. 

Intervention 1.0 was facilitated by Best Value legislation that an “authority must make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness” (Local Government Act 1999).  This remains the basis of statutory interventions today.  But the context could not be more different. 

The Blair government commissioned an extensive set of national performance indicators, developed independently by the Audit Commission with a common definition and quality assured through local audits.  The “District Auditor” role maintained in depth contextualised knowledge of each local council, and could identify and flag significant governance or performance issues at an early stage.  As well as diagnosing problems, the Audit Commission’s national studies provided evidence-based recommendations to help improve local services’ economy, efficiency and effectiveness.

The strengths of this model were the comprehensive nature of the evaluation, its collective and mutually supportive use of expert agencies to provide an evidence base, and the sanctions that went with it including transparent public reporting.  Inlogov produced a series of reports diagnosing and explaining the causes of poor performance, analysing recovery planning and strategies for organisational recovery, evaluating various policy instruments for recovery (such as lead officials) and identifying the key developmental mechanisms for recovery. 

Our reports clearly demonstrated that the context for poor performance determines effective mechanisms for recovery: one size definitely does not fit all.  The causes of failure are varied, such as ineffective leadership arrangements and inadequacies in the operating culture. 

Improvement mechanisms need to address issues of cognition, capability and capacity.  Cognition is the council’s awareness and understanding of their performance trajectory, which is often resilient to changes in political control.  Capability concerns the construction and institutionalisation of a change-oriented vision by council leaders.  Finally, capacity is the ability to deliver the required vision and change. The required change mechanisms are both internal (such as leadership change) and external (for example, peer mentors, expert advisors, and funding). 

Intervention 2.0

The arrival of the Coalition government in 2010 brought rapid changes to intervention.  The Audit Commission was summarily discarded, publicly justified by claimed savings of £50m.  In reality, recent research by the Audit Reform Lab at the University of Sheffield suggests that English audits have higher costs and greater delays than in Wales or Scotland (where centralised oversight arrangements were maintained). 

From 2010 to 2020, central government intervention was relatively rare with formal interventions in only four councils.  However, from 2021 this situation changed substantially with interventions in eight councils in three years (none of these councils were controlled by the ruling national party).  In the same three years, there were statutory best value notices in a further nine councils.

It’s fair to describe this phase of intervention as less structured and evidence-based, without robust national data or independent routine inspection of councils.    

There has been limited evaluation of Intervention 2.0 to date.  Our early research findings based on three case studies suggest a five-stage model of intervention: (i) crisis revelation, (ii) delegitimisation, (iii) imposed reforms, (iv) capacity building, (v) restoration or reorganisation.  We conclude that under localism interventions were not merely administrative responses to failure but were deeply political acts that reshaped the legitimacy and capacity of local governance. The Commissioners, acting as technocratic agents of central government, connected central and local government, and had the effect of buffering the political tensions of intervention, while leading a process in which managerial competence rather than local democracy steered intervention.

Where next for intervention?

The raft of interventions related to section 114 notices, the establishment of the new Local Government Outcomes Framework and local audit reform including the Local Audit Office indicate a new phase of intervention and open opportunities to develop a more systematic and evidence-based approach.  More thought is needed on how this should work in future, including the role of peer reviews and inter-council support arrangements.  The centralisation of intervention power and the dominance of technocratic intervention needs to evolve to suit devolution and to provide greater support for local democracy. This could build on the new audit arrangements through a “district auditor” type overview of governance.

The acid test of reforms should be that while central government would still be able to intervene when councils were failing, the intervention process would minimise the suspension of local democracy, do as little damage as possible to the public’s trust in their local council, and foster good local democratic political leadership.

This article first appeared in the Municipal Journal on 16 October 2025 titled “How not to damage democracy”. It is available here: https://www.themj.co.uk/damage-democracy

Dr Jason Lowther is director of INLOGOV (the Institute of Local Government Studies) at the University of Birmingham.  Prof Paul Joyce is an Associate at INLOGOV.  Dr Philip Whiteman is a lecturer on public policy and administration at INLOGOV.