Oldham Council has officially declared it is breaking the law because it has no leader or cabinet. The authority's top legal officer warned this could lead to expensive government intervention, with costs potentially passed to local taxpayers.

The situation stems from the May elections, which left no single party with a majority. After four attempts, councillors have failed to elect a leader, creating what the council's monitoring officer, Alex Bougatef, called "prolonged institutional paralysis".

On Friday July 31, Mr Bougatef issued a formal Section 5 report to all 60 elected councillors. It states that without a leader or cabinet, the council is acting unlawfully. This triggers a 21-day deadline for councillors to elect a leader at an extraordinary council meeting.

The council confirmed that if councillors cannot reach an agreement at that meeting, it will write to the government to consider next steps. This could include sending in commissioners to run the council.

In his report, Mr Bougatef said the council currently lacks "clear political direction". He warned that appointing commissioners would carry "significant" financial risks that are not budgeted for. This money would need to be found through savings, service cuts, or council tax rises.

The deadlock has persisted for over two months. Officers are using emergency powers to keep basic services running, but key political decisions are on hold and multiple meetings have been cancelled. All parties blame each other for the failed talks.