The government commissioned a report into the council’s finances, which was completed by the Chartered Institute of Public Finance and Accountancy.
Simon Hoare, the minister for local government, said in a written statement, external that the review found the council’s portfolio of debt-funded investments was “very large and uniquely complex to a degree that is concerning and puts the council at risk”.
He said there were “clear financial risks” and if these materialised they were very likely to have “significant impact on local residents and some impact on the national public purse”.
In October, another minister’s letter to the council said the findings of the draft version of the review were “very serious”.
The inspector is to look at areas including its decision making and scrutiny, the adequacy of the council’s capacity to address the recommendations in the institute’s report, and the impact the investment portfolio and its management has on service delivery.
The inspector is set to report his findings by 30 August.
