Councillor claims Government ‘oversaw failing’ and holds contempt for struggling authority
A SENIOR Nottingham city councillor has questioned whether the Government-appointed board monitoring the authority has provided value for money amid an ongoing financial crisis.
Speaking about the authority’s bleak financial position, Councillor Steve Battlemuch says the Government’s Improvement and Assurance Board (IAB) “oversaw this failing.”
The council’s effective declaration of bankruptcy in November was issued in relation to the ongoing financial year, which ends in April. The IAB, first appointed in January 2021 following council failings including Robin Hood Energy and the illegal spending of housing money, recently issued instructions to Nottingham City Council which its leader says effectively ties the hands of Labour members.
Councillors at the final budget meeting will be presented with plans from council officers and will be faced with either accepting them or rejecting them and failing to set a balanced budget, which they legally have to do.
In a piece published on Nottingham Labour’s website, Councillor Battlemuch agrees that the IAB’S most recent instruction will result in the “bypassing” of elected councillors. Councillor Battlemuch said: “The council has had [the IAB] in place for almost three years. Questions should certainly be asked about their role given that they oversaw this failing. “It’s a terrible irony that a council facing financial constraints must pay probably over £500,000 for their direct costs. Many would rightly question if this constituted ‘value for money’. They are now highly likely to be replaced by full-blown commissioners after Gove said he was ‘minded to’ replace the IAB with them. “The fact he said this in December, and we still do not know if or when they are coming shows the contempt they hold our council in. A parting gift from the IAB was an instruction that the final budget for 24/25 was now under the sole gift of the chief finance officer, thereby in effect bypassing elected councillors even before the expected arrival of commissioners.”
The Government’s final decision on whether to send in taxpayer-funded commissioners to oversee Nottingham City Council could be made as soon as this month. The commissioners would have the power to hire and fire council officers and suggest amendments to the council’s budget.
Despite Councillor Battlemuch’s criticism, the Government has defended the work of the IAB.
Asked to respond to the question of the IAB’S effectiveness, the Government pointed to a ministerial letter sent to Sir Tony Redmond, the IAB’S chair, after the Government said last year that it was minded to appoint commissioners.
The letter from Simon Hoare says: “I would like to take this opportunity to recognise formally the hard work of the board which has provided a valuable source of advice, expertise and challenge to the council since your appointment in January 2021. Under your chairmanship, the board has played a critical role in helping the council lay the foundations for its recovery and, particularly since the board’s issuing of recommendations in February this year, take a stronger grip on its immediate priorities.
“The ‘minded to’ decision to escalate this intervention is not a reflection on the effectiveness of the board in helping the council to drive forward the necessary improvements. Indeed, it is clear that the progress that has been made to date would not have been achieved without your support.”