A damning report into governance at Northumberland County Council sent shockwaves throughout the county when it was presented to members.
The long-awaited governance review told of a dysfunctional council paralysed by infighting at the very top of the authority, along questionable financial decisions and "harrowing" tales from officers of poor treatment and an environment of "fear and intimidation."
The report was presented by its primary author, Max Caller, at an extraordinary meeting of the full council on Wednesday - but Mr Caller did not go into all the details of the report, some of which make for truly shocking reading.
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The leader of the council, Coun Glen Sanderson, has welcomed the report while the authority has said work has began to study the report in detail and prepare actions to take its recommendations forward. A spokesman for the council said the purpose of the report "was to highlight areas for improvement, provide learning points and give an opportunity for the council to adapt and change the way in which it does business."
We've rounded up some of the most significant aspects of the report, which focuses on the period since chief executive Daljit Lally was appointed in 2017, below.
Financial issues
A "considerable six figure sum" was paid as a final settlement to an officer without the involvement or knowledge of senior members. The officer in question left unexpectedly, immediately prior to government rules on a cap in exit payments of £95,000 coming into force.
Councillors only discovered the true amount when it was listed in the council's statement of accounts. Furthermore, there was "no proper audit trail" for the approval of the exit, and it is unclear which senior officer signed off on the agreement.
A total of £1.1 million was paid out in settlement figures to council officers between May 2017 and February 2019 - the same amount as paid between February 2013 and May 2017. The report stated this figure was "higher than comparable councils."
The council's staffing and appointments committee had no opportunity to discuss the circumstances or the settlement agreement of a departing monitoring officer. The exit agreement "was signed off by the CEO and the S151 officer." However, the report adds: "The S151 officer later established that costs were added after her sign off."
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Criticism of the CEO
The authors of the review seemed particularly shocked with the behaviour of the council's CEO when council leader Glen Sanderson attempted to commission the report in the first place. Coun Sanderson requested an item on a cabinet agenda in the summer of 2021 to start the process - but no report was forthcoming and Coun Sanderson expressed concern and offered to take it as an urgent item.
What followed, according to the report, was an "extraordinary series of documents" which "appear to demonstrate a desire to frustrate and obstruct the process," even seeking legal advice to see if the leader's requests were legitimate. The council's external auditor even indicated that it was considering issuing a statutory recommendation requiring the full council to undertake a review - but "even this did not stop the attempt to delay matters."
Mr Caller's team found instructions were issued to officers to prevent them from effectively responding to this without the consent of the CEO. The CEO even offered to refer Coun Sanderson to the council's occupational health service after he expressed anger and frustration at the "delays and obstruction."
Later, the investigators state "effective working relationships do not exist between the CEO and the cabinet." It was noted that the CEO, leader and deputy leader (Coun Richard Wearmouth) do occur regularly, but that "some reasonable requests from the leader to officers are contested, denied, or delayed."
A section of the report was also dedicated to the disciplinary process that saw Mrs Lally suspended in August 2020. The report branded the situation " a totally unacceptable state of affairs" with the charges "neither proved nor dismissed" due to failings by councillors and officers in the process.
The report notes that the issue was initially handled by the then monitoring officer, until it became clear he was "conflicted" and was then passed by a "process which is entirely unclear" to an officer who had been "significantly promoted" by the CEO in the recent passed. The report notes that there was "no suggestion" the officer behaved inappropriately but suggested it was "not the wisest choice."
The investigating team were told of "extensive power" given to the CEO and deputy CEO, which caused tension between senior councillors and created bottlenecks on a range of issues where the CEO decided she had to "personally sign off" on matters. In the conclusion section of the report, Mr Caller and his team write that it is "hard to see" how the council could be led by a part-time CEO switching between two organisations (Mrs Lally is also executive director for system leadership at Northumbria Healthcare NHS Foundation Trust).
It adds that the position of the CEO needs to be resolved, continuing: "It is common ground between the Chief Executive herself and the leaders of the political parties that the improvement journey is not one she can lead on" and that "bringing this episode to a speedy conclusion is essential."
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Staffing issues
A major concern was the turnover of statutory officers, particularly monitoring officers and section 151 officers. The report said this could be viewed as "indicative of a culture where constructive advice and challenge has not been welcomed by senior officers of the council."
Staff who had left described in "harrowing terms" how they had been treated "extremely poorly" by senior officers at NCC. The report also stated there was "little substantial trust in the most senior officer levels of the council, and there exists a climate of fear and intimidation."
Colleagues mentioned to investigators they "used to be proud to work for NCC, but not any more," with the council culture described as promoting "fear and mistrust, there being a fear of consequences and the working environment was described as harmful." It was noted that many staff look to senior levels of the council and its "dysfunctionality" with "despair and embarrassment."
Furthermore it was noted that under regulations full council should formally appoint officers designated as statutory officers - those that are required by law. In addition, any remuneration over £100,000 should be "transparent and reported to full council." According to the report, "these regular local government procedures and practices have not been universally followed at NCC."
Many staff who left the organisation signed settlement agreements that included "in effect, non-disclosure agreement clauses" although that terminology was not used. The report added that the SAC committee did not play any part in those arrangements.
Mr Caller and his team were also forced to obtain waivers as a number of individuals who were identified for interview, as well as others who got in touch independently, were subject to "legally binding non-disclosure agreements." The report notes that the number of those agreements was "significantly higher than our collective experience in other authorities."
Some staff even expressed a fear that if their contribution was traced back to them, their future at the council would be compromised. Interviewees talked about the risks of "being in favour one moment and out the next," while being able to speak truth to power - which the report says is "essential" to local government" was neither "encouraged or even tolerated."
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Political issues
In one particularly damning line, the report states that the "political and cultural context has neutered effective strategic direction for the organisation" and suggests a "major reset is required." Several senior officers described a "vacuum" in the leadership of the organisation, with the effectiveness of both political and organisational leadership said to have "deteriorated significantly" in recent years to a "very low level."
Informal meetings between the cabinet and the CEO do take place - but are widely described as "uncomfortable and unhelpful" and "dreaded" by some due to the tension between members and the CEO.
It was noted that since the reform of local government in Northumberland in 2009, when the former district councils were disbanded and Northumberland County Council became a unitary authority, the Lib Dems, Labour and the Conservative Party had all led minority administrations. The Conservatives won the first overall majority in 2021 but subsequently lost it following a by-election.
According to the document, in some councils this electoral variation would have produced a "high degree of cross party working" reserving political debate for areas of "real difference." However, at Northumberland there was more a "winner takes all mentality" which saw the rise of "inappropriate behaviours" evident in meetings and correspondence seen by the investigating team.
Senior executive officers were described as "dismissive" of member views and this has developed into "contempt for the current cabinet."
Effective working relationships "do not exist" between he cabinet and a "significant minority" of elected members. This is due to members and officers being "polarised in support for, or in opposition to, the CEO." The culture of mistrust and poor behaviour is "widely described among members, the CEO and many senior officers" with the investigating team given "dossiers" of information by several councillors as "evidence" to support claims of wrongdoing or other allegations.
Members have issues with the council constitution - several told Mr Caller's team that they knew what it says in the constitution before saying what they actually do - which the report brands "unacceptable" and leads to further issues of confusion and poor discipline. It was claimed there is an "absence of a shared vision for Northumberland" with one senior officer quoted as saying: "It sometimes feels like we are chasing the priorities of individual members, rather than a plan."
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Governance issues
The report states Northumberland County Council has lost its way, with leadership at both political and managerial levels distracted" and involved in "internal battles" to an "unhealthy extent." The operation of the council was described as "dysfunctional" by many members and officers with senior officers and the council spend too much time "fighting each other."
Relationships between senior councillors and some senior officers were described as "broken" and "confrontational." Worse still, the organisation is "paralysed" due to large volumes of procedural issues which demand "an extraordinary resource." There have been 4,792 freedom of information requests in three years and 307 subject access requests, many from senior officers and members.
Furthermore, there were some 30 conduct complaints - almost all from officers and members - despite the fact the process is meant to be for use by members of the public. This has led to senior officers and senior members deemed to be "compromised" and unable to communicate on a daily basis.
In addition, normal local government processes were not followed within the council for increases in remuneration to council officers over £100,000, at which point both the SAC committee and the full council should have been involved.
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