The Government says it is "disappointed" with the pace of improvements being made at Nottingham City Council amid reports of a "distinct lack of urgency" at the authority. A minister says he will continue to assess whether commissioners should be sent in to run the council in future.
It comes following the latest report from the Improvement and Assurance Board (IAB), which has been overseeing improvements at Nottingham City Council since January 2021. The move followed issues including the misspend of £40 million and the collapse of Robin Hood Energy.
The IAB has been sending quarterly reports to the Government on the council's progress and the latest one, sent to the Government on February 24, says the "pace of improvement must be accelerated." Sir Tony Redmond, the chair of the IAB, says in the report: "The Council has made progress in a number of areas in terms of improvement and recovery but there has been a distinct lack of urgency in tackling the necessary change."
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So far, Nottingham City Council has avoided the fate of other authorities such as Liverpool in that taxpayer-funded Government commissioners have not been sent in to run it. But responding to Sir Tony's latest report, minister Lee Rowley says: "I will continue to assess whether the exercising of further powers under the Local Government Act 1999, including the appointment of commissioners, will be necessary on receipt of your next report in June."
One of the key issues raised in this latest report is the number of agency workers and consultants the council is having to employ due to staff shortages. Recently, the authority announced spending of over £1 million in this area in the space of one week.
Sir Tony Redmond writes: "There is in place a substantial programme relating to training and reskilling of workforce but, again, progress has been slow in implementing this. Additionally, a previously mentioned concern about culture reveals a desire to achieve change but there is a lack of urgency in addressing this underlying problem within the council.
"The board has frequently challenged management to explain how elements of the workforce struggle with the concept of change. Slowly this issue is being tackled. It is acknowledged, in terms of recruitment, the labour market is challenging and it is compounded by issues of pay comparability.
"The council is examining pay policy as a means of strengthening its permanent staff but, in the meantime, is reliant on a number of key temporary appointments." In terms of improvements in finance, Sir Tony's report says the council has admitted that "unsatisfactory progress" has been made in "virtually all key elements of the Finance Improvement Programme."
Other problems mentioned include changing behaviours in working practice remaining a "challenge" and examples of "delay or variation in the outcome of the decision-making process." The report also adds: "On a separate point the council must ensure that sound business plans are in place for Tram Link and Nottingham Castle before support or investment is contemplated."
Minister Lee Rowley concludes in his letter: "The council must increase the momentum with which change is being made and I expect the council to continue to comply with the directions moving forward. This is a critical point in the council's improvement journey.
"The city of Nottingham will continue to face many challenges and it is imperative that the council maintains and builds on the progress made to date. The onus is on the council delivering the necessary improvements to the board's satisfaction, and I will continue to seek your assurance on progress made and the adequacy of the council's performance against the instructions."
The Government's intervention at Nottingham City Council is set to last until September 2024, unless this is amended beforehand. The Government gave the IAB more powers last year, meaning that it can now direct rather than guide the council's improvement activities.
Council Leader, Councillor David Mellen, said: “We welcome the latest report from the Improvement and Assurance Board and its acknowledgement of the progress we have been making.
“We know that further improvements are required and the report clearly sets out the areas where we need to bring about change at a faster pace. However, we are committed to working with the Board to ensure that happens.”
Mel Barrett, the council’s chief executive, said: “The report underlines the importance of the work we have been doing through our Together for Nottingham improvement plan to respond to the Board’s Instructions, and we are updating the Board on a regular basis on the action we have already taken in response to the Instructions they have issued.
“People right across the council have demonstrated a commitment to working together to deliver the improvement needed to meet our Best Value duty to the people of Nottingham.”
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