[ad_1]
Bournemouth, Christchurch and Poole Council’s Medium Term Financial Plan (MTFP) and budget is “unrealistic” and based on “the delivery of an overly ambitious transformation programme both in terms of levels of savings and timescales for delivery”.
That’s according to the Department for Levelling Up, Housing and Communities (DLUHC), which has issued the authority with a Best Value Notice – a non-statutory but formal notification that DLUHC has concerns about its governance, culture and finance.
A Best Value Notice is also a request that the authority engages with the department to provide assurance of improvement.
Suzanne Clarke, deputy director, local government finance at DLUHC wrote a letter to Graham Farrant, chief executive at Bournemouth, Christchurch and Poole Council, to explain the situation.
Clarke said concerns highlighted by a non-statutory external assurance review into the council – which was completed in June 2023 – included those over the MTFP and the authority’s transformation plan. The review also noted that member relationships have been “very poor” with relationships between councillors and officers “not positive” in recent years, she wrote. “Meetings have been acrimonious with a high number of complaints to the Standards Committee,” the review stated.
Concerns have also been raised in the review about the governance and remit of Future Places, a regeneration company established by the authority in 2021. “The leadership team, both individually and as a team, needs development and support so that they can act more effectively as a strategic and corporate leadership team,” the review said.
Clarke noted that the authority has “engaged constructively and openly” with the external assurance review, “and has indicated it is already taking some steps to address the concerns raised in the review. We expect the authority to continue to improve and, specifically, to set out plans to address concerns and deliver all recommendations set out in the external assurance review at pace.”
15th Annual LATIF & FDs’ Summit – 19 September 2023
250+ Delegates from Local Government & Investment
Bournemouth, Christchurch and Poole Council has been asked to review its transformation programme “as a matter of urgency” and commission an external financial resilience review to report by September 2023 and inform the setting of a new MTFP and budget.
DLUHC has also asked the authority to establish a “sound” budget setting process and begin preparations for the 2024/25 budget as soon as possible, and draft a sustainable MTFP and three-year budget by the end of September 2023.
Addressing the other highlighted concerns, DLUHC said the authority should “reset” its culture and relationships between officers and members; put in place an externally facilitated development programme for the senior officer team; and agree a business plan for Future Places with a portfolio of priority projects and clear timescales for delivery.
Clarke also wrote that the authority should agree a corporate strategy and clear priorities by July 2023. “The authority should also put in place a regular annual cycle for the business plans, mid-year reviews and year end reviews of all its companies to be reported to the appropriate scrutiny and decision-making bodies,” she said.
The Best Value Notice will remain in place for 12 months, but can be reissued, withdrawn or escalated.
As part of the process, Bournemouth, Christchurch and Poole Council is expected to engage with the Local Government Association and DLUHC during the period of the notice.
In 2022, the former local government minister agreed in principle to support Bournemouth, Christchurch and Poole with up to £20m in exceptional financial support, following a request from the authority. To receive the funding, the council was asked to produce a full financial plan for 2023/24 and agree to the external assurance report of its governance and finance.
The Best Value Notice was issued in response to concerns highlighted in the review relating to governance, culture and finance.
—————
FREE weekly newsletters
Subscribe to Room151 Newsletters
Follow us on LinkedIn
Follow us here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
[ad_2]
Source link