What’s New?
September 22, 2022
September 21, 2022
September 21, 2022
September 21, 2022
September 21, 2022
September 21, 2022
There is an echo of the 1980s in some of the current concerns over local government governance. Grant Thornton’s Paul Dossett argues that the sector needs a governance reset based on a culture of transparency where staff are actively encouraged to flag concerns.
When I started my career in 1986, governance was a significant issue in the local government sector. The Audit Commission had been set up in 1983 with the express challenge of improving value for money, including governance, in the sector. Not only were late accounts (and they were much easier to produce in that era) an issue, but poor financial management, weak governance and poor value for money were also key issues.
Councils such as Lambeth, Liverpool, and Hackney hit the headlines for all the wrong reasons in that time. District Auditors issued public interest reports on a regular basis and exercised powers that no longer exist, such as surcharges of members. The Public Interest Report on the Westminster “Homes for Votes scandal” was perhaps the low watermark of the relationship between local government and external audit, and the final material use of auditor surcharge powers.
The Audit Commission, CIPFA, the Local Government Association and other local authority interest groups helped with the journey of improvement into the 1990s and beyond. While there was continued use of public interest reports and statutory recommendations in that period, they tended to reflect specific and isolated failings at specific bodies rather than wider concerns about governance in the sector.
The rolling out of the Nolan Principles (the Seven Principles of Public Life) in 1995 to all public sector bodies set a benchmark for good practice and the standards we should expect from officers and members. While there were governance challenges in the first decade of this century too, they were once again relatively isolated cases.
Local government needs a governance reset to restore confidence and integrity in our politicians and public servants. A culture of transparency needs to be prioritised, where staff are actively encouraged to flag concerns.
Room151’s Monthly Online Treasury Briefing
September 30 2022
Online
Public sector delegates – register here
The second decade of this century though, and the start of the 2020s, have seen a very different pattern emerge, with three key themes arising.
Grant Thornton’s latest report, Lessons from public interest reports and other interventions (part II), provides live examples of where council members and officers have not lived up to the standards that taxpayers are entitled to expect in the use of public funds. The report identifies:
We believe that local government needs a governance reset to restore confidence and integrity in our politicians and public servants – the vast majority of whom continue to carry out their functions with diligence, integrity and honesty. A culture of transparency needs to be prioritised, where staff are actively encouraged to flag concerns, and all councils should look to assess their culture against the lessons learned from the latest tranche of interventions.
While there are no clear or absolute measures to assess whether a council has a poor culture, peer challenge and review could be a way for councils to work together to offer this insight, alongside ongoing self-assessment. All councils should strive for an open culture that encourages challenge and criticism. This needs to start with the political leadership and embed itself throughout the organisation.
Paul Dossett is partner and head of local government at Grant Thornton UK LLP.
—————
FREE weekly newsletters
Subscribe to Room151 Newsletters
Room151 LinkedIn Community
Join here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
You must be logged in to post a comment.
Why having the right housing data is crucial for councils: Kate Dodsworth from the Regulator of Social Housing explains why councils need to get on top of their social housing data to ensure they comply with new regulatory requirements. Change[…] dlvr.it/SYlg8s pic.twitter.com/9Y7cXsiVNh
Devon County Council makes £18.6m savings to plug overspend: Devon County Council has found £18.6m of in-year savings and additional income to reduce its overspend and inflation costs of more than £40m, which it says will “safeguard the financial[…] dlvr.it/SYk3t0 pic.twitter.com/4s8bdQW1js
‘Nothing off table’ as Leicestershire faces £140m budget gap: Leicestershire County Council’s budget gap is set to grow from £8m to £28m next year and could top £140m by 2026 according to a report from the authority’s director of[…] dlvr.it/SYggqb pic.twitter.com/2hYMARBOQQ
PAC chair fears local government finances will be ‘squeezed’ further: The chair of the Public Accounts Committee (PAC) has warned that local authority budgets “will be squeezed” due to central government turmoil and the energy crisis. Dame Meg Hillier,… dlvr.it/SYG0nT pic.twitter.com/rLdss3o4DH
Redmond: FRC’s sector-specific role ‘crucial’ for local audit: Sir Tony Redmond, author of an influential review into local government audit, has welcomed the appointment of the Financial Reporting Council (FRC) as the “system leader” but said that it[…] dlvr.it/SYG0mr pic.twitter.com/6Hbc9iUxG7
Over 50% of councils report insufficient funding for net zero: Over half of the councils in Room151’s annual treasury and finance survey estimate that they will have insufficient funding to deliver net-zero pledges in 2023. The survey of more than[…] dlvr.it/SYG0lX pic.twitter.com/KiTHqdtnrg
Over 50% of councils report insufficient funding for net zero: Over half of the councils in Room151’s annual treasury and finance survey estimate that they will have insufficient funding to deliver net-zero pledges in 2023… room151.co.uk/treasury/over-…
PAC chair fears local government finances will be ‘squeezed’ further: The chair of the Public Accounts Committee (PAC) has warned that local authority budgets “will be squeezed” due to central government turmoil… room151.co.uk/funding/pac-ch…
Redmond: FRC’s sector-specific role ‘crucial’ for local audit: Sir Tony Redmond, author of an influential review into local government audit, has welcomed the appointment of the Financial Reporting Council… room151.co.uk/151-news/redmo…
Carol Culley: the net-zero 151: Manchester City Council’s section 151 officer talks to Mike Thatcher about net-zero targets, private sector investment and combating fuel poverty through sustainable housing. [This article is part of a series[…] dlvr.it/SY2B7q pic.twitter.com/yTjYFb6pa3
© Copyright 2022 Room 151. Typegrid Theme by WPBandit.