The Government has formally expressed concerns about BCP Council’s culture, finance and governance – with ministers stressing a need for urgent improvement.
BCP Council became only the third local authority in the country to receive a best value notice from the Department of Levelling Up, Housing and Communities (DLUHC).
It came after an external assurance review of the council by an experienced local government official found a raft of issues.
Review author Lesley Seary highlighted problems around councillor relationships, as well as those between members and officers.
She said the “highly ambitious” programme to transform the authority’s services needed to be reviewed immediately, while “significant improvement” was needed in the governance culture.
Ms Seary, who has more than 20 years’ experience in local government, described as “unrealistic” the current medium term financial plan and budget.
The reviewer said urban regeneration company BCP FuturePlaces Ltd also had to be reviewed and the council senior leadership team required “strengthening”.
These findings prompted minister for local government Lee Rowley to issue the non-statutory best value notice on Thursday, August 3.
A letter by DLUHC deputy director for local government finance Suzanne Clarke to BCP Council chief executive Graham Farrant said: “The department expects authorities to identify and implement arrangements to secure continuous improvement.
“Ministers are concerned as to BCP Council’s capacity to comply with its best value duty under the Local Government Act 1999.”
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Mr Rowley wrote to the council earlier in the year to express concerns about the then Conservative administration’s 2023/24 budget plans.
Leader at the time Cllr Drew Mellor resigned in February and Cllr Philip Broadhead took over. The budget was subsequently approved based on “traditional” financial options.
The external assurance review was actioned by the department last summer after ministers torpedoed the BCP Tory group’s proposal to fund the transformation programme by selling thousands of beach huts to a company it would have wholly or majority owned.
At last week’s BCP Council cabinet meeting, the Three Towns Alliance administration’s portfolio holder for finance said the “current trajectory is completely unsustainable”.
Cllr Mike Cox said: “Without a significant dose of realism and old-fashioned professional scepticy you will be headed to the financial rocks.
“Turning a ship the size of BCP around will not be easy and I believe the course we have now set will start to repair the damage and steer us to calmer waters.”
Ms Clarke’s letter warned that failure to demonstrate continuous improvement may be judged to contribute to “best value failure” and the levelling-up secretary could consider using powers to take action.
Her letter said: “This best value notice is a formal notification that the department has concerns regarding an authority and is a request that the authority engages with the department to provide assurance of improvement.
"The department expects authorities that have been issued with best value notices to continue leading their own improvement, and we recognise that BCP are already taking steps to address issues in the authority.”
The best value notice will be in place for 12 months initially. It may be withdrawn or escalated at any point based on available evidence and it could be reissued if further assurances are deemed necessary.
The council has been told to:
- Set up a comprehensive member induction programme and on-going member training programme
- Put in place an externally facilitated development programme for the senior officer team
- Review the transformation programme as a matter of urgency and commission an external financial resilience review to report by September 2023
- Establish a sound budget setting process and begin preparations for the 2024/25 budget as soon as possible, and draft a sustainable medium-term financial plan and three-year budget by the end of September 2023
- Agree a business plan for BCP FuturePlaces with a portfolio of priority projects and clear timescales for delivery
- Agree a corporate strategy and clear priorities by July 2023
Some of these steps were initiated at the BCP Council cabinet meeting on Wednesday, July 26.
Field work on the external assurance review took place in March. It was submitted to the department in June and it was published yesterday.
Ms Seary wrote: “There is enormous potential across Bournemouth, Christchurch and Poole and a real commitment from everyone I met to improve the lives and opportunities for all its residents, businesses and visitors.
“Whilst there are challenges, the council are aware of these. Fundamental to the change required is the setting of a far more positive culture and a sound approach to the council’s finances.
“The council needs to use the fresh start provided by the local elections to reset the culture of the council and to agree a clear corporate strategy and priorities to deliver high quality services for its residents, businesses and visitors.
“If the council moves swiftly to deliver these recommendations then I believe they should be able to make the necessary improvements.”
In a statement, Mr Farrant said:
Graham Farrant, Chief Executive of BCP Council said: “BCP Council welcome’s DLUHC’s report and notice.
"DLUHC has recognised its findings correspond to our own understanding of the challenges we face and we have already taken steps to act on its recommendations.
"We’re confident we’re making the necessary improvements to put the Council on a sustainable financial footing and will continue to work hard towards that goal.”
What is best value?
Councils have a duty to ensure they deliver the best value principle.
It became a statutory requirement under the Local Government Act 1999.
The relevant section of the act requires authorities, such as BCP Council, to “make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness”.
Draft guidance published by DLUHC last month says in practice this covers how authorities exercise their functions to deliver a balanced budget, provide statutory services and secure value for money in all spending decisions.
Actions against authorities which do not demonstrate continuous improvement over time can include the secretary of state taking action to protect the public purse.
The best value notice issued to BCP Council was non-statutory and requests direct engagement from the authority to provide assurances on improving areas of concern.
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