Thanet District Council – which suspended its section 151 officer in August – is facing questions over the costs of a number of staff non-disclosure agreements (NDAs) and a predicted £862,000 overspend.
A Freedom of Information request revealed that 31 NDAs have been made since 2015 at a cost of £446,503.
2nd Housing & Regeneration Finance Summit
October 31, 2019, County Hall, London
Opposition councillors and local campaigners have asked for answers on this in the week that a budget report revealed continued financial pressures, with a projected £862,000 overspend.
The report sent to councillors yesterday said: “In addition to the £1.35m of savings proposals there are several budget pressures highlighted at the end of 2018-19 that have the potential to recur in 2019-20 and will need close monitoring throughout 2019-20.”
Members are set to discuss finances at a meeting this week but there are fresh doubts about two major infrastructure projects which could lead to the council failing to balance the books.
Councillors will review a report by East Kent Audit Partnership which will detail the budget pressures facing the council including the controversial sale of the Dreamland amusement park in Margate and Ramsgate Port which is not currently operating.
The hedge fund that was set to buy the tourist attraction shut down earlier this month leaving the council with on-going liabilities plus costs dating back to its purchase.
Port of Ramsgate, which is owned and operated by the council, is also adding to pressures. In February, the council axed £500,000 in funding and signalled it would cut a further £130,000.
Thanet announced yesterday it will launch a consultation on the port’s future – with £40,000 set aside to fund it.
The official advising councillors at the meeting will be Chris Blundell, deputy section 151 officer, while the section 151 officer Tim Willis remains suspended, with no explanation from the council.
Opposition councillors were set to demand answers about his suspension at a council meeting earlier this month.
A staffing matter was scheduled for discussion at a general purposes committee that should have taken place on 2 September.
However, the meeting was postponed.
That part of the committee meeting would have been held behind closed doors.
A decision had been taken to exclude the press and public because sensitive information, including that of an individual, was going to be discussed.
The opposition Green Party group has called for central government to investigate and there is growing pressure from others for the council to set the record straight.
Labour opposition councillor Karen Constantine said: “I remain very concerned about the council.
“I’ve been approached by employees who have raised issues about how the council is being run.
“The council has been under financial pressure for many years and NDA payouts do not help. There is a lack of clarity. The public deserve answers.”
Local campaigner Steve Coombes, chair of Ramsgate Action Group, also called for greater transparency from Thanet DC about its activities.
He told www.Room151.co.uk: “It’s a lot of money. There’s a lot of information now published on the internet that needs to be answered by the council.”
Both Coombes and the Green Party have called for ‘outside intervention’ but say that in the absence of a watchdog like the Audit Commission they will have to wait for the council to given them answers.
Ed Hammond, director of campaigns and research at the Centre for Public Scrutiny told Room 151 that bringing back the Audit Commission, which was scrapped in 2015, was unlikely to help.
He said: “Every council will have different reasons for the risks they face. The Audit Commission found it just as difficult to direct compliance on councils as ministers. You’ve got to have a balance of risk. It’s an issue that’s preoccupied us, CIPFA, the government and others.”
The council refused to comment on the on-going suspension stating it was a staff matter.
Thanet said the council was financially resilient but was facing the same pressures as other councils in England and Wales. The council claimed its challenges were greater in the next financial year.
A statement said: “The 2018-19 outturn showed the financial position of the council strengthened during the year.
“General fund reserves increased by £3.7m and total usable reserves increased by £5.5m, improving the financial resilience of the authority.
“Despite this improved position, the council – like most other authorities – continues to face and meet major financial challenges.
“The council successfully delivered a balance budget for 2019-20, through the identification and implementation of key saving items.
“The council has identified an on-going budget deficit of approximately £1m from 2020-21 onwards, primarily as a result of ongoing central government funding reductions.
“Work is underway to address this deficit as part of the 2020-21 budget setting process.”
