Nottingham City Council has avoided the step of commissioners being brought in to run the Labour-run authority following mistakes including the misspending of £40m and issues caused by the failure of Robin Hood Energy
The Government had previously indicated it was minded to take the action back in June, but will instead strengthen the powers of the independent Improvement and Assurance Board (IAB)currently overseeing progress on improvements at the council.
In a statement issued by the Government, it said further measures to address the failures at Nottingham City Council have been confirmed by the Secretary of State for Levelling Up, Housing and Communities, Greg Clark. The measures will give the board statutory powers to compel the council to act on their advice, ensuring they are delivering necessary changes.
The decision means recommendations from the IAB in relation to the council’s ‘Together for Nottingham’ improvement plan will now have the weight of Statutory Direction, meaning the IAB will have the power to direct the council in relation to its improvement programme, in addition to offering advice
The decision has been welcomed by the council, which sent a formal letter of representation to the Government last month outlining why it believed the current support arrangements in place through the IAB 'had been working well' and that its preference was for these to remain in place.
The government had previously updated Parliament in June this year that it was minded to intervene in the Council after independent reports commissioned in response to the discovery of unlawful Housing Revenue Account expenditure found “serious historical financial and governance failings” as well as “cultural failings and a reluctance to escalate issues appropriately".
After reviewing evidence of the close and positive working between the council and the Improvement and the Assurance Board, the Secretary of State has decided to strengthen the powers of the Board rather than the appointment of commissioners at this time.
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The Chair of the IAB, Sir Tony Redmond, will be required to provide a formal review of progress in three months’ time which will be considered by the Secretary of State. As part of this evaluation, the Secretary of State has required the Council to strengthen their approach to longer term budgeting.
City Council Leader, Councillor David Mellen, said: “The decision not to appoint Commissioners shows that our representations about the positive progress we were making with the current Improvement and Assurance Board have been listened to and taken into account by the Government. I would like to thank the significant number of partners and stakeholders who wrote to the Government in support of the council and the progress we were making.
"This was acknowledged by the Secretary of State who said that he wants to offer help not punishment. We know there is a lot more work to do but we have demonstrated our determination to address the issues which led to the non-statutory review and I am confident we will continue to work well with the Board to make the progress needed to emerge a better council.”
Chief Executive, Mel Barrett said: “We have had a positive relationship with Sir Tony Redmond and the Improvement and Assurance Board and have valued their support and challenge as part of our improvement journey. I have no doubt this will continue as we work together in the interest of providing services in the best possible way for Nottingham residents.
“It is reassuring that Government has identified that our Together for Nottingham recovery and improvement plan remains the basis of the council’s required improvement, but we understand the pace of improvement needs to increase and that the plan will need to be reappraised to ensure we continue to head in the right direction. We will continue to support our dedicated and committed staff in the highly valued work they do to provide vital services to city residents and continue to engage constructively with partners.”
The Secretary of State, for Levelling Up, Greg Clark MP said: "Under Sir Tony Redmond’s leadership of the Improvement Board, working with the council leader, Nottingham City Council has taken important steps to deliver the changes expected by local residents.
"However, it is clear that more action is needed to ensure the Council is able to meet its best value duty. I have therefore issued Directions today that will empower the Improvement and Assurance Board and accelerate improvements at the Council."
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