A Best Value inspection is one of the most serious forms of government intervention in local government, and it’s about to be carried out on Bedford Borough Council.
Ordered by ministers under the Local Government Act 1999, it involves independent inspectors being sent into a council to assess whether it is meeting its legal duty to provide services that are efficient, effective and good value for money.
Councils must show they are spending public money properly, running services competently, and continuously improving. When there are signs that a council may be failing in that duty, the government can step in and launch a Best Value inspection.
Read: Government inspectors to examine Bedford Borough Council as financial pressures continue
Best Value inspections are typically used only when there are serious and persistent concerns, often where warning signs have emerged.
These can include:
- Severe financial mismanagement, such as a council being unable to balance its budget
- Governance breakdowns, where scrutiny and oversight fail
- Allegations of corruption or wrongdoing
- Persistent service failures, particularly where internal checks have not worked
Northamptonshire County Council, for example, was inspected in 2018 after auditors raised major concerns about its finances and the authority issued a Section 114 notice, effectively declaring bankruptcy.
Read: What happens if a council “goes bust”? Section 114 explained as Bedford faces financial pressure
In 2020, Liverpool City Council was inspected following a police investigation and wider concerns about governance and property decision-making.
Croydon Council’s financial collapse led to years of escalating government oversight, culminating in the appointment of commissioners.
What happens during a Best Value inspection?
Inspectors are appointed directly by the Secretary of State and given a specific scope, often focused on the areas that prompted concern.
They may examine:
- Financial management
- Decision-making and governance
- Specific departments such as planning, housing or regeneration
- Audit and oversight arrangements
Inspectors can access council documents, contracts, emails, meeting records and financial accounts, and can interview senior officers and councillors.
By law, councils must cooperate fully and are also required to cover the reasonable costs of the inspection.
The purpose is to determine whether the authority is complying with its Best Value duty, and if not, why not.
In Liverpool, inspectors concluded the council had failed to comply with its duty in “numerous ways”, highlighting weak governance and poor oversight of major property deals.
In Northamptonshire, inspector Max Caller said the collapse was not simply about funding pressures, but also reflected serious weaknesses in financial management and governance.
What powers do inspectors have?
Inspectors have wide authority to gather evidence, and their reports carry significant weight.
They may recommend major government action, including sending commissioners in to take over parts of the council’s functions. Their findings form the basis for any formal intervention.
What happens after an inspection?
Once the report is published, ministers decide what steps to take. Possible outcomes include:
- Improvement plans and formal directions requiring specific changes
- Oversight panels monitoring progress
- Appointment of commissioners, removing powers from elected councillors in key areas
- In extreme cases, structural reorganisation of the council
Northamptonshire’s inspection ultimately led to the council’s abolition and replacement by two new unitary authorities in 2021.
Liverpool had commissioners installed to oversee regeneration and property functions, and the government also ordered major electoral reforms, including whole-council elections.
Croydon showed how intervention can escalate over time, moving from advisory panels to statutory oversight and, eventually, to commissioners.
Why does this matter to Bedfordians?
A Best Value inspection is designed to protect:
- Local services
- Public funds
- Trust in local democracy
When councils fail financially or through poor governance, residents can face service cuts, rising council tax, or long-term instability.
Government intervention is controversial because it can temporarily override local democratic control, but ministers argue it is necessary in extreme cases to safeguard taxpayers and restore confidence.
Their use remains uncommon, but when triggered, it usually indicates a serious systemic failure rather than minor problems.
A Best Value inspection is effectively the government’s strongest “check-up” on whether a council is still functioning properly, and whether urgent action is needed to protect residents.
By John Guinn
Local Democracy Reporter
