Opposition members of Nottingham City Council say the Government's most recent message to the authority should serve as a "very clear warning" to the Labour group running it. Issues including the misspend of £40 million and the collapse of Robin Hood Energy meant an Improvement and Assurance Board (IAB) was appointed in January 2021 to closely monitor the decision-making processes and governance of Nottingham City Council.
The IAB delivered its seventh report on the council's progress to the Government last year. The Government uses these reports to decide whether its oversight of the council needs to go further, but it was confirmed on Thursday, February 2, that Nottingham City Council has again avoided commissioners being sent in to run it.
The Government's intervention at Nottingham City Council is set to last until September 2024, unless this is amended beforehand. Nottingham City Council says it has made several improvements over the last two years and that the Government's decision to allow current arrangements to continue is a reflection of that.
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But Lee Rowley, the Parliamentary Under-Secretary of State for Local Government, says in his letter to Sir Tony Redmond, who has been chairing the IAB: "I note the good progress on improving decision-making processes and constitutional reform, for example. It is clear, however, there is still much to do to deliver the level of service deserved by the residents of Nottingham."
Despite also avoiding commissioners being sent in last year, the Government gave the IAB more powers last year. The change means the IAB can now direct rather than guide the council's improvement activities.
Councillor Andrew Rule, who leads the Conservative group at Nottingham City Council, said: "I think the key phrase in the letter from the minister is that he is supportive of using powers of direction if the at pace improvement required isn't delivered. I think that is a very clear warning to the Labour group that powers of direction are still on the table at this point.
"It's that phrase 'at pace improvement' that has been a consistent theme. I'd say two thirds of Sir Tony's reports have had this instruction in them and senior Labour councillors need to very much take that on board.
"The Government previously wanted to put more pressure on the council to move at pace which is why they gave Sir Tony the power to issue directions. If in due time he feels that things aren't moving at pace, I don't think he should be afraid to use his powers of direction.
"If it's a choice between using powers of direction and full blown commissioners coming in, I would rather the powers of direction were used to avoid that. I couldn't possibly comment on what commissioners being sent in would mean because it's something that none of us have ever been through in Nottingham."
But Councillor Kevin Clarke, who leads the Nottingham Independents group at the city council, said: "It's good news for Nottingham that the improvement board see a way forward and it looks like they will be staying for a while to guide further improvement. They have seen enough improvement to stop the commissioners coming in and that can only be a good thing."
Nottingham South's Labour MP Lilian Greenwood also reacted positively to the news in a tweet, which read: "Very welcome news. My Labour colleagues at Nottingham City Council have worked hard to confront previous problems and are making real progress despite the challenges posed by huge Government cuts."
Despite welcoming the news that commissioners would not be sent in, Councillor Kevin Clarke said he did have some concerns about the council's efforts to improve its finances. He said: "I'm very disappointed about the costs for community centres going up and I'm watching that very closely.
"They were going to close the libraries, they have closed leisure centres, all against the manifesto they had at the last elections. We've had a youth centre close down as well in Clifton which is absolutely diabolical."
Speaking about the main improvements which he felt needed to be focused on, Councillor Rule added: "Sir Tony's report references a failure to move at pace, particularly in certain departments where transformation is concerned. There also seems to be a culture where pressure is put to bear on officers to delay unpopular and unpalatable decisions, which then leads to issues with balancing the medium-term financial plan and budget which we simply can't afford to do.
"I would hope they would finally start to put responsible governance ahead of political ambition. But given political ambition has cost this city money in terms of the £36 million on Robin Hood Energy and the £51 million in unlawful spending from the HRA, it very much remains to be seen."
A statement from Nottingham Labour on the Government's announcement read: "After more than a decade of Tory austerity, the pandemic and then the recent worsening of the cost of living crisis, the work we have done to balance our budget has not been easy. Government cuts to our budgets mean that it is more difficult to do everything we want to do to help our communities, but we have been fighting for Nottingham and protecting our services against the worst effects of Tory cuts.
"We made sure that the council – and our amazing staff – were there for you during the coronavirus crisis and we fought hard to get what we needed for our city to help keep people safe. We have changed the culture and governance of the council so that issues like the Housing Revenue Account are uncovered, shared transparently and sorted.
"Under the current leadership, the council has made significant changes to the way it works, is open about the issues the council faces and is determined to get things right – this has been recognised by the IAB. We will continue to work alongside the IAB to reshape the way we deliver the best outcomes for our city. We will also keep working for a better deal for our city."
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