Oldham Council Faces Government Intervention 2026

Key Points

• Oldham Metropolitan Borough Council is yet to appoint its leader for the fifth time since May 2026 local elections
• The council’s monitoring officer, Alex Bougatef, sent a Section 5 report indicating that the authority is operating illegally without a leader
• Chief executive Shelley Kipling will send a letter to the Secretary of State for Housing, Communities and Local Government in five working days
• Four proposals in total have been offered at the extraordinary meeting held on 20 August 2026, and all of them have been refused
• The Ministry of Housing, Communities and Local Government officially deemed Oldham in need of further supervision via a stewardship team
• Should no leader be appointed by September, the Greater Manchester Combined Authority will transfer the Oldham’s committee posts to another authority
• Government commissioners may be appointed to take control of the council, which can cost at least £1,200 or more daily
• Council services will go on working as usual during the crisis, as stated by an Oldham Council spokesperson
• Political group leaders from the Labour Party, Reform UK, Liberal Democrats and the Oldham Group submitted different proposals that did not get enough 31 votes

Oldham (Manchester Mirror) August 21, 2026 – Metropolitan Borough Council faces unprecedented government intervention after councillors failed for the fifth time to elect a leader at an extraordinary meeting on 20 August 2026, triggering a formal notification process to the Secretary of State for Housing, Communities and Local Government.

What Led to Oldham Council’s Government Intervention?

The Greater Manchester authority has been in no overall control since the local elections in May 2026, with no councillor managing to gain the majority support needed to lead at multiple meetings since. As reported by William Eichler of LocalGov, uk/local/oldham/">Oldham Council is to write to the Secretary of State after councillors again failed to elect a leader at an extraordinary meeting of Full Council, the authority has confirmed.

The council’s monitoring officer, Alex Bougatef, had already warned members in July that in failing to appoint a leader they were breaking the law, issuing what is known as a Section 5 Report. This document initiates a process that could see outside intervention if no solution was found. At the extraordinary meeting on 20 August, Mr Bougatef warned councillors that ‘the appointment of a leader is not optional’.

Chief executive Shelley Kipling told the meeting that the council was at a ‘distinct disadvantage’ because it could not take part in decisions being made by the Greater Manchester Combined Authority. She said Oldham has been ‘formally identified’ as needing ‘additional oversight from MHCLG through their stewardship team’. This is a step which normally precedes statutory intervention and the appointment of commissioners.

How Did the Extraordinary Council Meeting Unfold?

Yesterday’s meeting started with an explanation from Alex Bougatef, monitoring officer, and Shelly Kipling, chief executive. Ms Kipling added that she was in ‘regular contact’ with the Ministry of Housing, Communities & Local Government. She also said that if there is no leader by September the combined authority will ‘reallocate’ Oldham’s seats on committees to other authorities or offer roles based on political proportionality.

Four separate proposals were made during the extraordinary meeting, which was the fourth attempt to appoint a leader, but politicians were unable to agree a way to work together. As reported by the Local Democracy Reporting Service, both Labour and Reform put forward bids to form a minority administration, as well as an alliance made up of smaller parties and an independent councillor.

Councillors voted on seven proposals forward to resolve the matter – but all failed to pass. None of the options secured the 31 votes needed for a majority. In response to a question later in the meeting, Ms Kipling said the UK Government had escalated their oversight of the situation in recent weeks, telling councillors this suggested an ‘anticipation of a requirement for government intervention or greater more formalised support’.

What Proposals Were Put Forward and Rejected?

The Labour group proposed a minority administration, with commitments ‘not to initiate new major projects’ and offer scrutiny chair roles to opposition groups. As reported by LGC Plus, Labour group leader Arooj Shah said the situation is ‘profoundly distressing’. Cllr Shah told the meeting that she would continue regular meetings with opposition leaders to ‘ensure that dialogue, engagement and joint working remain at the heart of how we govern’. She added: ‘It’s an offer that is rooted in humility.’ No opposition parties voted in favour of this arrangement.

Reform UK minority administration

Reform put forward group leader Cllr Quigg to run a minority administration. Lewis Quigg, Reform group leader, blamed smaller parties – Liberal Democrats, Conservatives and the Oldham Group – which had ‘held hostage’ the authority. During the discussion Lib Dem deputy leader Mark Kenyon said ‘you could have had my vote’ as he was prepared to work in the interests of his ward but that Reform had not reached out to discuss priorities. Conservative councillors backed this proposal but no other groups did.

Liberal Democrat committee system proposal

A proposal from the Lib Dem group to appoint a leader who would take advice from various committees was also rejected. Lib Dem group leader Sam Al-Hamdani spoke of the deterioration in politics and said this had come about by ‘refusing to listen’. Cllr Kenyon said this proposal had been put together because ‘sadly there is little trust in this chamber’ and admitted it was ‘committee system by the back door’. Cllr Al-Hamdani added: ‘This is a sledgehammer to crack a nut, but at the moment we have no way of getting the nut. So let’s vote for the sledgehammer.’

Labour’s deputy leader Elaine Talyor said her group has concerns about the ‘extremely elaborate paper’ as it would take ‘a lot of officer time’ and be ‘difficult for external partners’ to understand. Cllr Kenyon agreed that it was complex but said: ‘Is it better than having commissioners come in? I maintain that it probably is.’

Oldham Group rotating leadership

Cllr Kamran Ghafoor said the Oldham Group could not back either Labour or Reform to form an administration and instead wanted ‘fair politically balanced arrangements’. Cllr Ghafour had submitted a proposal for rotating leadership but said he felt this was ‘wasting my own time’ because after comments about Gaza from one of the Reform members ‘I don’t think I could work with Reform’. This was seconded by Cllr Al-Hamdani as the ‘only option left on the table – I do wish that people would support it’. However in the debate that followed all options were rejected.

What Are the Financial and Operational Implications?

It is believed Oldham is the first time commissioners could be imposed for failing to elect a council leader and could cost £1,200 or more a day, with commissioners often brought in when a council goes effectively bankrupt. Conservative councillor Beth Sharp said: ‘Doing nothing comes at a cost and that cost isn’t being paid by us. It’s paid for by the residents who elected us.’ She added: ‘At the end of the day, residents do not care who won the argument, they care whether their council works.’

Mr Bougatef has warned while there were no immediate risks, there could be ‘significant’ financial costs coming down the line. Chief Executive Shelley Kipling said that while council services are continuing as they did before, the lack of a leader or elected members in key roles puts at risk how key children’s and adults services are assessed and meant the authority was not being represented at a Greater Manchester level. This, she said, could mean the borough could miss out on key opportunities and funding.

Despite the deadlock, the authority says council services will ‘continue to operate as normal’, adding ‘arrangements remain in place to ensure the Council can fulfil its statutory responsibilities and continue delivering for residents, communities and partners across the borough’. An Oldham Council spokesperson said: ‘At an extraordinary meeting of Full Council, councillors were again unable to elect a Leader and form an administration for Oldham Council.’ A representative from Oldham Council stated, ‘Consequently, the council’s monitoring officer will communicate with the Secretary of State to formally notify them of the circumstances.’

What Political Tensions Emerged During the Meeting?

In the meeting, councillors criticised the borough’s ‘toxic’ politics where elected members faced ‘abusive behaviour’ and ‘hostility’ and ‘unfair aggression’. However quickly there were rows between members and claims the council was ‘the worst it’s ever been’. There were allegations of personal attacks and lying as a majority of elected members struggled to any agreement. At one point, independent councillor Brian Hobin said: ‘It’s getting personal, it’s getting nasty and we are not getting anywhere.’

Currently political group leaders are meeting regularly with the chief executive so that essential decisions can be made and day-to-day activity continue. But Ms Kipling said this situation was ‘not intended to be used on an ongoing basis’. As reported by Place North West, the Ministry of Housing, Communities, and Local Government has commenced an oversight process that could end with commissioners being brought in to run the politically volatile local authority.

MHCLG commenced talks with Oldham Council chief executive Shelley Kipling two weeks ago, notifying her that the council had been designated formally as ‘an authority that requires additional oversight’. This will come in the form of a MHCLG appointed stewardship team who will meet with the local authority to provide governance support. The stewardship team will meet with Kipling in two weeks’ time. Kipling told members on Friday that this team was the first step in what could be a broader intervention.

Background to the Leadership Deadlock

Oldham Council has not had a Leader since May’s local elections. The Greater Manchester authority has been in no overall control since the local elections in May. Oldham Council declared it was breaking the law in July in an ongoing row over who should lead the local authority after the May local elections left it in no overall control.

Last month, the council’s chief legal officer, Alex Bougatef, indicated that the council was operating illegally without any leadership by issuing a Section 5 Report. This document initiates a process that could lead to external intervention if a resolution is not reached during a meeting scheduled for August 20. At the end of last month, the council monitoring officer handed all 60 councillors a Section 5 notice which outlines that the council has been acting unlawfully by not having a leader or cabinet.

As reported by the Oldham Chronicle, Oldham Council has been without political leadership since the May 2026 local elections, with four full council meetings having failed to elect a leader, according to Reform UK. Reform UK also claims council officers have had to rely on emergency powers while the political deadlock continues. The party also says the continuing situation risks government intervention and commissioners being imposed, although no supporting information about any proposed government intervention was supplied with the release.

What Are the Predictions for Oldham Residents and Council Services?

The intervention process could significantly affect Oldham residents in several ways. Government commissioners could be brought in to run a leaderless council, after councillors once again failed to form an administration. Commissioners are officials sent by the UK Government to help run councils deemed to be failing or breaking the law with little local say.

If commissioners are appointed, the cost of £1,200 or more per day would ultimately be borne by local taxpayers through council resources that could otherwise be spent on services. The lack of representation at Greater Manchester Combined Authority level means Oldham could miss out on key opportunities and funding that would benefit residents.

For residents, the immediate impact may be limited as council services will continue to operate as normal during the transition. However, the assessment of key children’s and adults services could be compromised without proper political leadership in place. The reallocation of Oldham’s committee seats to other authorities by September would diminish the borough’s voice in regional decision-making.

The situation represents an unprecedented development in UK local government, as it is believed Oldham is the first council to face commissioner appointment specifically for failing to elect a council leader. The stewardship team from MHCLG will provide governance support, but this is described as the first step in what could be a broader intervention.