Latest news with #BestValue
Yahoo
2 days ago
- Business
- Yahoo
Crisis-hit Croydon Council needs reset, MP says
A "short and sharp reset" is required for Croydon Council to recover from poor performance and high debt levels, the minister for housing, communities and local government has announced. Jim McMahon has told the House of Commons the council's financial position is "deteriorating rapidly" after a report highlighted concerns about its ability to improve. McMahon said that failing to change course "would condemn Croydon's residents to a worsening position without an exit strategy" and he was "minded to" send in commissioners to run the council. Executive mayor of Croydon, Jason Perry, said he and the council "had done everything possible" to fix the finances "whilst protecting vital services". Perry added: "We have generated over £230m in capital receipts, including £130m of asset sales and have plans to sell a further £68m assets this year. "The council also raised council tax by 10% over the cap in 2023, to help meet the panel's demand that we close the gap in the council's finances." The council had been under review by the government's improvement and assurance panel, set up to provide external advice, challenge and expertise. McMahon said the council's general fund debt sits at around £1.4bn and it relies on the allocation of Exceptional Financial Support (EFS) through in-principle capitalisation directions to balance its budget. The panel's report has said there has been a lack of pace throughout the intervention, but the deteriorating financial position, which is not being gripped and tackled adequately by the council, is reaching a "financial crisis". McMahon added: "I am satisfied that the London Borough of Croydon is failing to comply with its Best Value Duty. I am therefore minded to exercise powers of direction under section 15(5) and 15(6) of the Local Government Act 1999 to implement an intervention package." Perry said, via a statement: "If at any time the panel or government felt that there was any action the council should be taking and was not, they had the power to instruct us. They never did. "Surely that means we are doing everything possible, and they agree with our actions? We have already made very difficult decisions and in my view the residents of Croydon have felt enough pain. "Despite all the improvements that have been delivered by the council and its staff, it appears the government wants to centralise control into the hands of commissioners." He said the council would consider all options before submitting its formal response to the government, the deadline for which is 25 June. Listen to the best of BBC Radio London on Sounds and follow BBC London on Facebook, X and Instagram. Send your story ideas to Croydon Council asks for £136m government bailout Council to make cuts to services to save £30m Croydon approves council tax rise of 15%
BBC News
08-04-2025
- Business
- BBC News
Improvement board's final verdict on 'well-led' Liverpool City Council
Liverpool City Council is "well-led" and on a "well set" trajectory for improvement, according to the final report submitted by the board set up in the aftermath of government-appointed year marked the end of a three-year intervention by commissioners at the authority after the excoriating Caller Report in 2021 and a non-statutory Improvement and Assurance Board was then set up. The group, led by former commissioner Mike Cunningham has given its final assessment, concluding that there was a "dedication to improvement" amongst the authority's leadership and financial stability was a continued focus. The report said the leadership team had "made difficult decisions well", adding: "The council has successfully set a balanced budget for 2025-26, and has a robust approach to in-year financial monitoring." The document, which will be discussed by the authority's cabinet members on 15 April, said there was some confidence that "the council's ambitions for itself as an organisation and for the residents it serves will be achieved".Commissioners were brought in from June 2021 following the damning Best Value inspection by Max Caller which shone a light on the failings within the council. A team of four officials led by Mr Cunningham were put in direct control of areas such as highways, finance and regeneration, with a fifth commissioner appointed in November 2022 due to a lack of progress. In December 2023, the commissioners confirmed such was the improvement in the 12 months since, they were able to hand back key powers to the council ahead of officials recommended support of the council should continue on an informal basis as some areas still required work to "demonstrate a sufficient stable improvement trajectory". Over the past nine months officials have highlighted a series of improvements, particularly the leadership, the Local Democracy Reporting Service said this had strengthened the city council's focus on ensuring continuous improvement across the initial Caller report, the council's regeneration efforts came under intense and scathing officials said this had been "fundamentally transformed" and the council was starting to recover its external reputation with the private sector, the combined authority and central had also been an area of continuing unease for commissioners, but the improvement board gave an updated assessment. Officials wrote: "Over the period of the Improvement and Assurance Board's operation, it has been clear that the service remains focused on continuing to improve in the areas identified by the commissioners – building capacity, implementing its improvement plan and improving the quality of decision-making."The building blocks of the service are now largely in place. Although there remains much to be done, the board has greater confidence in the plans in place to deliver an improved service and can see good evidence of a focus on delivery and impact for the residents of the city." 'Unstoppable momentum' The city council leader councillor Liam Robinson, said the board's report "demonstrates how much progress we have made". "Politically and managerially we have been transformed, particularly over the last two years with a new cabinet and senior leadership team."He added there was an "unstoppable momentum" in the improvements which were starting to make a difference to the quality of frontline Cunningham said: "The stability and commitment to improvement, as well as a clear understanding of the challenges that remain, provides a solid platform for the future."The senior leadership team know and accept there is much more to do, and are open to constructive challenge, which means that we are able to have confidence in the future." Listen to the best of BBC Radio Merseyside on Sounds and follow BBC Merseyside on Facebook, X, and Instagram. You can also send story ideas via Whatsapp to 0808 100 2230.
