The Ministry of Housing, Communities and Local Government (MHCLG) recently published Lessons learnt from six secretary of state interventions into council operations undertaken since 2010 (four formal and two non-statutory).
Section 10 of the Local Government Act 1999 gives the secretary the power to authorise an inspection of a council to determine whether it is complying with its Best Value Duty and other related requirements under Part 1 of that Act. If the secretary is satisfied that an authority is failing to comply then section 15 of the 1999 Act gives the power to either directly exercise or appoint commissioners to exercise some or all of the functions of the relevant local authority.