Boris rout tips city takeover into chaos
GOVERNMENT COLLAPSE PUTS PLANS IN DOUBT
GOVERNMENT chaos has thrown plans to take over Nottingham City Council into confusion.
The Whitehall department overseeing the Labour-led authority has been thrown into turmoil by this week’s spate of ministerial resignations.
Yesterday was the deadline for the city council to submit its letter of representation after former minister of state for local government, Kemi Badenoch, told it the Government was “minded” to take further action upon the discovery of more significant historic financial failings.
The council was already under intense scrutiny from a Government-appointed improvement board following the collapse of Robin Hood Energy.
Ms Badenoch said: “The reports paint a deeply concerning picture of serious historic financial and governance failings.
“In light of this evidence, the Secretary of State is satisfied that Nottingham City Council is failing to comply with its best value duty, and is minded to implement the intervention package set out below to secure compliance with that duty.”
The next phase was the deployment of commissioners – nonelected officials who charge up to £1,200 per day, as seen in Liverpool, Slough and Northants.
But this week, Prime Minister Boris Johnson’s authority collapsed. Ms Badenoch resigned on Wednesday, saying the Government could “not function” under Mr Johnson. Then Mr Johnson sacked Michael Gove, her boss.
Mr Gove was replaced by Greg Clarke, MP for Tunbridge Wells.
Yesterday, Mr Johnson officially resigned as Conservative Party leader.
Councillor David Mellen, leader of the council, told the Post he was annoyed by the situation, but said the council’s letter of representation had been sent to Max Soule, deputy director of local government stewardship, in good time.
The letter says: “We have understood that the seriousness of the issues and the need for improvement was not centred on a narrow technical issue of an individual company, but on the underlying way that we do things, and we have sought to do this in an open and transparent way.
“Together for Nottingham is our overarching improvement programme, which has benefited from the input, support and challenge from our Improvement and Assurance Board (IAB), chaired by Sir Tony Redmond. Solid progress has been made, including the development and adoption of a four-year medium-term financial plan, improved governance and decision making supported by greater clarity around member officer relationships, together with positive progress being made on our large-scale transformation and improvement programmes.
“Whilst acknowledging there is more to do, these significant achievements have been acknowledged by the IAB. We believe that the current support arrangements in place through the IAB are working well, and it would be the council’s preference that these arrangements remain in place.”
One of the turning points for the push for further intervention was the uncovering of issues surrounding the council’s housing revenue account. It was understood the chairman of the improvement board, Sir Tony Redmond, had seen it as concerning and, in a statement from the Government, he was revealed to be the lead commissioner should they be appointed.
The letter reveals the council has “a strengthened reserves position” which has allowed the council to identify “an appropriate funding strategy to repay the HRA”.
The letter, signed by Councillor Mellen and council chief executive Mel Barrett, adds: “In the event that Government decides to appoint commissioners to oversee the authority, the council would be supportive of Sir Tony Redmond being appointed lead commissioner for the reasons set out in your letter.”
Questions do remain, however, how the turmoil within Government will impact on the council’s situation.
The Department for Levelling Up, Housing and Communities has been contacted for comment.
We believe that the current support arrangements are working well
Nottingham City Council