{"id":90430,"date":"2018-03-27T12:55:03","date_gmt":"2018-03-27T12:55:03","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=f270f7467e0ddcd511bc6f56620d1734"},"modified":"2018-03-27T12:55:03","modified_gmt":"2018-03-27T12:55:03","slug":"statement-to-parliament-northamptonshire-county-council-statement","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=90430","title":{"rendered":"Statement to Parliament: Northamptonshire County Council: statement"},"content":{"rendered":"
\n

Mr Speaker, with permission, I wish to make a statement about the independent inspection report on Northamptonshire County Council.<\/p>\n

Everyone in this House, regardless of party, appreciates the crucial role that local government plays as the frontline of our democracy.<\/p>\n

Delivering vital services on which we all depend and helping to create great places to live.<\/p>\n

And, in doing so, making the most of every penny they receive from hard-pressed taxpayers to secure better outcomes.<\/p>\n

All of which builds confidence and trust between local authorities and those they serve.<\/p>\n

Which is why the situation in Northamptonshire is of such concern.<\/p>\n

Prior to my instigation of the report, there were signs that Northamptonshire\u2019s situation was deteriorating.<\/p>\n

External auditors at Northamptonshire had lodged adverse value for money opinions in audit reports\u2026<\/p>\n

\u2026suggesting that the council was not managing its finances appropriately.<\/p>\n

The former leader resigning in May 2016, also signalled the need for change.<\/p>\n

As late as last year, the Local Government Association conducted a financial Peer Review\u2026<\/p>\n

\u2026which concluded there were issues with delivering the Next Generation reforms and, again, with the mismanagement of its finances.<\/p>\n

The then Chief Executive Paul Blantern resigned in October 2017.<\/p>\n

These reports, along with the concerns raised by district councils in Northamptonshire\u2026<\/p>\n

\u2026and by Hon Members of this House with local constituencies\u2026<\/p>\n

\u2026prompted me to act, as I was concerned that there were potentially fundamental issues within the authority.<\/p>\n

On 9 January 2018, I informed the House that I had concerns regarding the financial management and governance of the council.<\/p>\n

I therefore decided to exercise my powers under section 10 of the Local Government Act 1999 to initiate a Best Value inspection of the council.<\/p>\n

And I appointed Max Caller, an experienced former Chief Executive and Commissioner, to conduct this\u2026<\/p>\n

\u2026and report on whether the council was complying with its Best Value duty.<\/p>\n

Mr Caller submitted his report<\/a> on 15 March.<\/p>\n

And I placed a copy in the library of this House so that everyone could see what he had found and see his recommendations.<\/p>\n

And before I go any further, I would like to thank Mr Caller, and his assistant inspector, Julie Parker\u2026<\/p>\n

\u2026for their dedication and focus in conducting such a thorough and prompt review.<\/p>\n

When I commissioned the Best Value inspection, I asked the Inspector to consider 4 things in particular:<\/p>\n

First, whether the council has the right culture, governance and processes to make robust decisions\u2026<\/p>\n

\u2026on resource allocation and to manage its finances effectively.<\/p>\n

Second, whether the council allowed adequate scrutiny by councillors.<\/p>\n

Third, whether there were strong processes and the right information available to managers and councillors\u2026<\/p>\n

\u2026to underpin service management and spending decisions.<\/p>\n

And fourth, whether the council was organised and structured appropriately to deliver value for money.<\/p>\n

Mr Speaker, I have reflected on the contents of the Caller report.<\/p>\n

It is balanced, it\u2019s rooted in evidence and compelling.<\/p>\n

The Inspector has identified multiple apparent failures by Northamptonshire County Council in complying with its Best Value Duty.<\/p>\n

Failures on all counts.<\/p>\n

Whilst I recognise that councils across England have faced many challenges in recent years, the Inspector is clear that\u2026<\/p>\n

\u2026 Northamptonshire\u2019s failures are not down to a lack of funding or because it is being treated unfairly or is uniquely disadvantaged compared to other councils.<\/p>\n

In fact, his report says that:<\/p>\n

\u201cfor a number of years, NCC<\/abbr> has failed to manage its budget and has not taken effective steps to introduce and maintain budgetary control\u201d.<\/p>\n

Furthermore, the complex structure of financial support meant oversight was difficult and accountability blurred.<\/p>\n

This report says that Northamptonshire\u2019s Next Generation approach – which envisaged outsourcing many of the council\u2019s functions – had no:<\/p>\n

\u201chard edged business plan or justification to support these proposals\u201d.<\/p>\n

This \u201c\u2026made it difficult to ensure a line of sight over costs and operational activity\u201d\u2026<\/p>\n

\u2026and \u201cmade it impossible for the council, as a whole to have any clarity or understanding as to what was going on\u201d.<\/p>\n

Similarly, the inspector found that Northamptonshire County Council used capital receipts to support revenue spend\u2026<\/p>\n

\u2026without documentary evidence demonstrating compliance with the Statutory Guidance and Direction.<\/p>\n

Furthermore, until this February, there was no report to full council on the proposed projects and their benefits.<\/p>\n

He says that \u201cSavings targets were imposed without understanding of demand, need or deliverability\u2026<\/p>\n

\u2026and it is clear that some Chief Officers. did not consider that they were in any way accountable\u2026<\/p>\n

\u2026for the delivery of savings that they had promoted.\u201d<\/p>\n

On the question of scrutiny, the report says that:<\/p>\n

\u201cThe council did not respond well, or in many cases even react, to external and internal criticism\u2026<\/p>\n

\u2026Individual councillors appear to have been denied answers to questions that were entirely legitimate to ask\u2026<\/p>\n

\u2026and scrutiny arrangements were constrained by what was felt the NCC<\/abbr> executive would allow.\u201d<\/p>\n

Mr Speaker, I want to emphasise that the report also indicates that the hardworking staff of Northamptonshire County Council\u2026<\/p>\n

\u2026are not at fault and have worked hard to provide quality services.<\/p>\n

With all of this mind, it is clear that I must consider whether further action is necessary to secure compliance with the Best Value duty.<\/p>\n

In doing so, I want to reassure the residents of Northamptonshire that essential services will continue to be delivered.<\/p>\n

The Inspector is clear that \u201cthe problems faced by NCC<\/abbr> are now so deep and ingrained that it is not possible to promote a recovery plan\u2026<\/p>\n

\u2026 that could bring the council back to stability and safety in a reasonable timescale.\u201d<\/p>\n

He recommends that \u201ca way forward, with a clean sheet, leaving all the history behind, is required\u201d.<\/p>\n

I am therefore minded to appoint Commissioners<\/a> to oversee the Authority\u2026<\/p>\n

\u2026using my powers under section 15 of the Local Government Act 1999.<\/p>\n

From day 1, I propose that they take direct control over the council\u2019s financial management and overall governance.<\/p>\n

Getting these basics right must be the first step in stabilising this authority.<\/p>\n

I also propose giving them reserved powers to act as they see fit across the entirety of the authority\u2019s functions\u2026<\/p>\n

\u2026if they consider that they must step in.<\/p>\n

My officials are writing to the council and district councils today to this effect and they can make representations on my proposal.<\/p>\n

I will consider any representations carefully before reaching a final decision.<\/p>\n

The Caller report makes a clear recommendation on restructuring, and notes there are a number of options available.<\/p>\n

So, in addition, I\u2019m inviting Northamptonshire County Council and the district and borough councils in the area\u2026<\/p>\n

\u2026to submit proposals on restructuring local government<\/a>.<\/p>\n

I would like those councils to think about what is right for their community and the people they serve\u2026<\/p>\n

\u2026and to come forward with proposals.<\/p>\n

This invitation and the letter to Northamptonshire that I mentioned earlier have been published today and copies placed in the Library.<\/p>\n

It is clear to me that any proposals from the councils should seek to meet the criteria for local government restructuring\u2026<\/p>\n

\u2026that I have previously shared with the House.<\/p>\n

Namely, that proposals should:<\/p>\n