Agenda item

Dennis Skinner introduced the report, which updated members on the publication of the NAO study into local government governance and accountability. The NAO report acknowledged the significant reduction in local government funding over the last few years but said that some of the ways authorities had responded (eg large scale transformation programmes, etc) added greater complexity to local governance arrangements and had suggested that MHCLG needs to improve its oversight.

Members noted that despite the funding reduction just 8% of local government had received qualified value for money conclusions in 2017 – the same level as 15/16 – whereas in the NHS the number had risen from 29% to 38% across the same period. Many of the survey results in the report were also positive about the strength of local governance arrangements. It was also noted that councils automatically fail the value for money judgement if they receive an inadequate Ofsted judgement, even though this is not an indicator of financial position.

It was suggested that further analysis of the survey results be undertaken to try to identify and support any councils where governance arrangements could be strengthened.

Dennis informed the board that the LGA Principal Advisors will be aware of the issues in councils across the country, including the 8% with adverse opinions and that the LGA is looking to strengthen its current finance offer and take-up.