Tony Kirkham becomes president of the Society of Municipal Treasurers at the end of March. He wonders whether being s151 is much like being King Canute and invokes the sage words of popstar Bryan Ferry as good advice for working though current challenges.
On many occasions I’ve stated that I would never want to issue a s114 notice. I have always thought that if it got to the stage of calling a halt to spending I would have failed in my responsibilities. But given the financial volatility that local government faces, what would be the nature of that failure?
I can’t control the number of children that need to be looked after by the authority. Can I really influence the number of people with learning disabilities; physical disabilities, or those who are just getting old and need support.
Would I be as ineffective as King Canute in telling the sea not to break on the shore? Some say it was arrogance that lead Canute to the sea that day with the purpose of showing his power. Others suggest his quest was to demonstrate that he had no power.
Risk profile
The excellent report recently published by the National Audit Office on financial sustainability of local authorities helps put this into context.
It is evident that all councils have made significant contributions to meet the challenges of austerity. Initially as a collective we have done this through driving efficiency, transformation and invest to save.
But the longer this has gone on, more and more of us have had to utilise the balance sheet, increasing our risk profile and reduce the services we offer.
Some changes to preventative services may in the longer term have significant implications for our residents and the country as a whole. Welfare reforms will also have unintended consequences we will have to address.
Having said all that, not all problems can be solved by simply chucking money at them. Take “looked after children” for example. On many occasions I have said that the accountant and the social worker should be naturally aligned when it comes to looked after children. The best outcomes for children are often produced by the less expensive interventions. In respect of greater devolution I also believe we can make the taxpayers’ pound go further.
I recently had the pleasure of being part of a Local Government Association (LGA) review team. They were a great group. I enjoyed my time and learnt so much.
The organisation we were working with was doing some excellent work driving their city forward, but as is often the case the money just isn’t there to meet the ambitions of the people and, as a result, they were borrowing to invest. But there is no guarantees that this approach will be a success.
Power
So, what powers do we have other than those that stem from our s151 responsibilities? We have our professional training and our experience to help as part of the senior management team; to do the best we can with what we’ve got and to tell anyone who will listen that we can’t give people what they had before. But we can endeavour to maximise the impact of scarce resources — the kind of challenge that gets us out of bed in the morning.
I recently read that the millennial generation no longer look at their careers through the lens of personal wealth and how much money they can earn, but rather what purpose they can achieve.
Does that mean the next time we advertise for new trainee accountants there will be a queue around the block?
This is unlikely if you believe research by Unison that suggests council chief executives get paid a sixth of what they would earn were they employed in private sector companies with similar-sized turnovers.
Personally, I have championed bringing new recruits into local government and I enjoy talking to our trainees. They are keen to make a difference and always interested in what we really do.
We do so much nowadays that people liken their jobs to spinning plates. Local authorities are like 50 or 60 businesses welded together, probably only Richard Branson would have a portfolio so wide.
But rather than spinning plates, it feels to me like we are playing 50 or 60 games of chess simultaneously. In some games we need to play it safe while in others we need to take a risk because, in this environment, we have to make a return. Is that any different to a FTSE 100 company?
When I started my current role four years ago, Room 151 asked me: “What’s your single most important piece of advice to others in a similar role?”
Being a big Bryan Ferry fan, I paraphrased the words of one of his songs. My advice was (Let’s) Stick Together. These are very challenging times. As austerity continues we face even bigger challenges. By working together through bodies such as CIPFA , the LGA, the Society of Municipal Treasurers, the Society of County Treasurers and SIGOMA, we can support each other and develop strategies that help us deliver much needed services in a financially sustainable way.
Tony Kirkham is section 151 officer and director of resources at Newcastle City Council. He becomes president of the Society of Municipal Treasurers this month, March 2018.
