扒哥吃瓜

Mr Speaker, with permission, I wish to make a statement about the independent inspection report on Northamptonshire County Council.

Everyone in this House, regardless of party, appreciates the crucial role that local government plays as the frontline of our democracy.

Delivering vital services on which we all depend and helping to create great places to live.

And, in doing so, making the most of every penny they receive from hard-pressed taxpayers to secure better outcomes.

All of which builds confidence and trust between local authorities and those they serve.

Which is why the situation in Northamptonshire is of such concern.

Prior to my instigation of the report, there were signs that Northamptonshire鈥檚 situation was deteriorating.

External auditors at Northamptonshire had lodged adverse value for money opinions in audit reports鈥�

鈥�suggesting that the council was not managing its finances appropriately.

The former leader resigning in May 2016, also signalled the need for change.

As late as last year, the Local Government Association conducted a financial Peer Review鈥�

鈥�which concluded there were issues with delivering the Next Generation reforms and, again, with the mismanagement of its finances.

The then Chief Executive Paul Blantern resigned in October 2017.

These reports, along with the concerns raised by district councils in Northamptonshire鈥�

鈥�and by Hon Members of this House with local constituencies鈥�

鈥�prompted me to act, as I was concerned that there were potentially fundamental issues within the authority.

On 9 January 2018, I informed the House that I had concerns regarding the financial management and governance of the council.

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.

And I appointed Max Caller, an experienced former Chief Executive and Commissioner, to conduct this鈥�

鈥�and report on whether the council was complying with its Best Value duty.

Mr Caller submitted his report on 15 March.

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

And before I go any further, I would like to thank Mr Caller, and his assistant inspector, Julie Parker鈥�

鈥�for their dedication and focus in conducting such a thorough and prompt review.

When I commissioned the Best Value inspection, I asked the Inspector to consider 4 things in particular:

First, whether the council has the right culture, governance and processes to make robust decisions鈥�

鈥�on resource allocation and to manage its finances effectively.

Second, whether the council allowed adequate scrutiny by councillors.

Third, whether there were strong processes and the right information available to managers and councillors鈥�

鈥�t辞 underpin service management and spending decisions.

And fourth, whether the council was organised and structured appropriately to deliver value for money.

Mr Speaker, I have reflected on the contents of the Caller report.

It is balanced, it鈥檚 rooted in evidence and compelling.

The Inspector has identified multiple apparent failures by Northamptonshire County Council in complying with its Best Value Duty.

Failures on all counts.

Whilst I recognise that councils across England have faced many challenges in recent years, the Inspector is clear that鈥�

鈥� Northamptonshire鈥檚 failures are not down to a lack of funding or because it is being treated unfairly or is uniquely disadvantaged compared to other councils.

In fact, his report says that:

鈥渇or a number of years, NCC has failed to manage its budget and has not taken effective steps to introduce and maintain budgetary control鈥�.

Furthermore, the complex structure of financial support meant oversight was difficult and accountability blurred.

This report says that Northamptonshire鈥檚 Next Generation approach - which envisaged outsourcing many of the council鈥檚 functions - had no:

鈥渉ard edged business plan or justification to support these proposals鈥�.

This 鈥溾��made it difficult to ensure a line of sight over costs and operational activity鈥濃��

鈥�and 鈥渕ade it impossible for the council, as a whole to have any clarity or understanding as to what was going on鈥�.

Similarly, the inspector found that Northamptonshire County Council used capital receipts to support revenue spend鈥�

鈥�without documentary evidence demonstrating compliance with the Statutory Guidance and Direction.

Furthermore, until this February, there was no report to full council on the proposed projects and their benefits.

He says that 鈥淪avings targets were imposed without understanding of demand, need or deliverability鈥�

鈥�and it is clear that some Chief Officers. did not consider that they were in any way accountable鈥�

鈥�for the delivery of savings that they had promoted.鈥�

On the question of scrutiny, the report says that:

鈥淭he council did not respond well, or in many cases even react, to external and internal criticism鈥�

鈥�Individual councillors appear to have been denied answers to questions that were entirely legitimate to ask鈥�

鈥�and scrutiny arrangements were constrained by what was felt the NCC executive would allow.鈥�

Mr Speaker, I want to emphasise that the report also indicates that the hardworking staff of Northamptonshire County Council鈥�

鈥�are not at fault and have worked hard to provide quality services.

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.

In doing so, I want to reassure the residents of Northamptonshire that essential services will continue to be delivered.

The Inspector is clear that 鈥渢he problems faced by NCC are now so deep and ingrained that it is not possible to promote a recovery plan鈥�

鈥� that could bring the council back to stability and safety in a reasonable timescale.鈥�

He recommends that 鈥渁 way forward, with a clean sheet, leaving all the history behind, is required鈥�.

I am therefore minded to appoint Commissioners to oversee the Authority鈥�

鈥�using my powers under section 15 of the Local Government Act 1999.

From day 1, I propose that they take direct control over the council鈥檚 financial management and overall governance.

Getting these basics right must be the first step in stabilising this authority.

I also propose giving them reserved powers to act as they see fit across the entirety of the authority鈥檚 functions鈥�

鈥�if they consider that they must step in.

My officials are writing to the council and district councils today to this effect and they can make representations on my proposal.

I will consider any representations carefully before reaching a final decision.

The Caller report makes a clear recommendation on restructuring, and notes there are a number of options available.

So, in addition, I鈥檓 inviting Northamptonshire County Council and the district and borough councils in the area鈥�

鈥�t辞 submit proposals on restructuring local government.

I would like those councils to think about what is right for their community and the people they serve鈥�

鈥�and to come forward with proposals.

This invitation and the letter to Northamptonshire that I mentioned earlier have been published today and copies placed in the Library.

It is clear to me that any proposals from the councils should seek to meet the criteria for local government restructuring鈥�

鈥�that I have previously shared with the House.

Namely, that proposals should:

• improve local government
• be based on a credible geography
• and command a good deal of local support

I will be particularly interested in hearing how the councils have consulted with their communities鈥�

鈥�t辞 ensure that Northamptonshire鈥檚 future is truly locally-led.

Mr Speaker, the findings of Mr Caller鈥檚 inspection report on Northamptonshire County Council are extremely serious.

Which is why this government is prepared to take decisive action鈥�

鈥�t辞 ensure that local people receive the high quality services they need and deserve.

And to restore faith in local government in Northamptonshire.

I commend this Statement to the House.