Agenda item

The Chairman invited Alan Finch, Principal Adviser (finance), to introduce the report.

Alan ran through the financial challenges facing councils at the current time and then outlined the elements of the LGA’s sector-led improvement financial support package for 2021-22. He emphasised that the support was for all councils, not just those that were having serious problems. In particular, he highlighted:

·       The success of virtual Collaborative Finance Panels for CFOs, that had been introduced in response to Covid, but would become a permanent part of the finance offer.

·       The establishment of a CFO Sounding Board to support the development and delivery of the finance programme.

·       The recent trialling of an enhanced finance module for Corporate Peer Challenge. This had proved invaluable for peer teams and would be used in the future.

Members comments and questions:

·       Members welcomed the formation of the new Sounding Board and asked whether it would be used to feed messages up to central Government. Alan said that they were hoping to use it more widely in the future to communicate with the wider sector.

·       Clarity was sought over the relationship between the traditional Corporate Peer Challenge teams and the Financial Improvement & Sustainability Advisers (FISA). Alan explained that FISAs worked as independent associates who offered advice to councils on specific issues at their request. Their work was coordinated and moderated through the LGA’s regional teams and they had helped to head off a lot of potentially more serious issues. FISAs were used to inform the delivery of Corporate Peer Challenge.

·       It was suggested that for the member peer support offer in paragraph 7.4, members with a broader local government experience, other than just finance, should be involved to help with wider political strategy and messaging around taking controversial decisions. Alan agreed that this broad experience was crucial.

·       As well as focussing on reducing risk, LGA support should look at helping councils to explore creative solutions to unlocking problems.

Decision:

·       Improvement and Innovation Board noted the update.