Lee Rowley has asked to see a “clear quickening of pace of improvement” at Slough Borough Council despite acknowledging the progress that has been made in financial oversight.
The parliamentary under-secretary of state for local government and building safety – who will be speaking at the Local Authority Treasurers Investment Forum (LATIF) and Finance Directors’ Summit 2023 next week – was responding to a third progress report produced by government-appointed commissioners.
Rowley asked that the council demonstrate a commitment to accelerating the pace of transformation, provide more evidence of further implementation of changes, and demonstrate a greater grip on the financial position.
He did, however, acknowledge that the latest report represented “good news” and a “more positive update and indicated cautious and early optimism that things are beginning to move in the right direction”.
Rowley said in his written response to the commissioners: “I am pleased to see that the council has made progress in some areas, including improvement in report quality and financial oversight, improved scrutiny arrangements and a successful move to all-out elections. Thank you for all of the work you and the council have done in these areas, and in putting these building blocks in place for the future. It remains early days but these examples, I hope, will be the start of a more positive trend back to health for the council.
“I know that the new leadership of the council is keen to resolve the challenges facing Slough, and I know that they will be keen, as I am, to see that a resolution moves forwards as quickly as possible.”
The progress report is the first since two new commissioners were appointed and Gavin Jones stepped up to the role of lead commissioner. The report was written on 13 July and summarises the commissioners’ assessment of the progress made by Slough Borough Council from January to June 2023.
The intervention, which began in December 2021, is “now at a pivot point”, the commissioners said in the report. Successes, such as a stable corporate leadership team, a move to all out elections, and an improvement in report quality and financial oversight, have been achieved.
While the council is now “demonstrating commitment to improvement and is working hard to that aim”, the commissioners’ report noted that “the scale of the problems that need to be addressed are such that more demonstrable and sustained improvement is required before commissioners can consider any reduction in the scale of intervention”.
The report explained that the council delivered a slight underspend for the 2022/23 financial year and has a balanced budget for 2023/24. “It is taking its financial position seriously but now must deliver against that budget which will be challenging in the new political context and significant service changes that will be required,” the report added.
15th Annual LATIF & FDs’ Summit – 19 September 2023
250+ Delegates from Local Government & Investment
The report also noted the positive impact of the appointment of executive director finance and commercial and section 151 officer Adele Taylor. An in-depth interview with Taylor, in which she discusses what it means to take on a role as a section 151 officer in an authority under government intervention, and why the huge challenges it faces makes Slough such an attractive place to work, can be read here.
On financial sustainability, the report said that financial governance and oversight, processes and practices are improving and noted that monthly budget monitoring reporting for 2023/24 is commencing from period two. The audit of the 2018/19 statement of accounts is due to conclude imminently, the report said, while the 2022/23 draft annual governance statement has been prepared for consideration by the Audit and Corporate Governance committee.
Capital receipts from asset sales are on track and the planning for the development of a balanced rolling three to five-year medium term financial plan (MTFP) commencing 2024/25 is underway, the report added.
“The council are fully aware that the 2023/24 financial year will be a key period in this improvement journey,” the commissioners stated in the report. “Self-awareness is evident in recent reports, of the inherent risks in the budget, urgent work to be undertaken to provide financial reassurance, and the likely medium-term nature of the improvements required.
“It is too early to determine the council’s ability to sustain itself so that it can continue to support its core services, obligations, and priorities, remain viable, stable, adaptable, and effective in the medium to long term without exceptional support, in the face of pressures from growing demand, tightening funding and an increasingly complex and unpredictable financial environment.”
The council must ensure the Financial and Commercial Services department and the Finance Improvement Plan are appropriately resourced, with the “right capability, capacity, and funding, to deliver the scale and pace of change required over the short to medium term and to facilitate timely engagement with commissioners on the key elements of the plan”, the report added.
In terms of next steps, the report stated that the council needs a Medium-Term Financial Plan “to give financial stability for the coming years”. The council must also build its financial capacity and capability across all business areas. “Its baseline financial systems are minimal and provide partial reassurance only. A financial improvement plan is required to address financial practice and accountability across the council,” the report said.
—————
FREE weekly newsletters
Subscribe to Room151 Newsletters
Follow us on LinkedIn
Follow us here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
