Agenda item

The Chair invited Alan Finch (AF), Principal Adviser, Finance, to introduce the update.

AF briefly ran through the 3 parts of the current year’s (2022/23) programme as outlined in the paper and reported that they were on track to deliver this successfully in full. He then moved on to the proposed programme for 2023/24 and how this was being strengthened in the light of the increasing financial challenges for the sector.

Members’ comments and questions:

·       The recent finance leadership essentials course at Warwick was welcomed, particularly the opportunity to network with a wide range of members from other authorities. However, more practical examples of help available, such as the newly established sounding board of Chief Finance Officers (CFOs), would have strengthened the course further.

·       In conjunction with training for councillors in understanding local government finance and accounts, effort should be put into making the accounts themselves simpler, for the benefit of both members and the general public. It was also considered important for councils to have strong, well-resourced finance scrutiny functions. AF agreed and said that he would consider providing advice for councils on writing financial reports in the near future.

·       It was considered important not just to focus support on those councils that were in the most severe financial difficulty but also to continue to provide preventative support to a wider range of councils to stave off more serious difficulties. The budget setting process should be all year round, not just from October onwards for 3 months, and training should reflect this.

·       In relation to the research exercise referred to in para 6.4 on councils currently in receipt of Section 114 reports, did the remit include looking more proactively at the wider scale of the problem and hence, councils that may be coming into difficulties in 2023? AF said that the aim of the research was to try and see what the decisions were that councils had made in the 5 years prior that may have contributed to the S114 notice being issued.

·       The importance of the LGA trying to find innovative solutions to councils’ problems, rather than just reactive short-term ‘survival’ support (vital though this is) was emphasised.

·       The importance of all councillors being involved in budget setting, whether that be directly, or through the audit and scrutiny processes, was emphasised.

Decision:

Improvement & Innovation Board noted the update.