Boost local government accountability through governance, ethical, and risk management improvements: CIPFA

CIPFA has made a series of recommendations to improve governance standards and support mechanisms in the UK public sector in response to a consultation from the Committee on Standards in Public Life.

The standard-setting body said that as part of the recommendations, local authorities must confront governance failures, including dysfunctional relationships between senior officers and elected representatives, to improve governance and accountability in the sector.

In the response to the consultation, 'Accountability within public bodies – acting on early warning signs', CIPFA called on public bodies to focus on governance failures, ethical standards, data-driven risk management, and boosting trusts, transparency and effective oversight.

On governance failures, CIPFA said the root causes of these failures include dysfunctional relationships between senior officers and elected representatives, insufficient seniority among key officers, and political cycle constraints.

It warned that key officers, specifically the monitoring officer and chief financial officer (s151 officer), "may not have the seniority they need to make their voices heard".

CIPFA recommended that councils boost the profile of audit committees and scrutiny, supported by robust training and resources.

On ethical standards, CIPFA encouraged local authorities to consider its guidance, 'Delivering Good Governance in Local Government', which sets out a framework for embedding ethical standards.

CIPFA also recommended using data in risk management, pointing local authorities towards its 'Financial Resilience Index' and the 'Prudential Code for Capital Finance', which both provide tools to support councils' risk management.

It also noted that data enables public bodies to analyse risks, model scenarios, and make informed decisions. However, effective data usage further requires overcoming barriers such as outdated IT systems and ensuring data privacy and interconnectivity.

Senior officers and elected representatives should also receive comprehensive support and training in order to foster a culture where any concerns can be safely raised, CIPFA added.

To help establish a culture where people feel safe to whistle blow, it recommended supporting senior officers and elected members with training, a robust standards regime, and caution around social media usage.

On social media, the response said: "Public bodies make decisions in an environment of social media and soundbites.

"This can encourage a reductive approach to complex issues, for which there isn't an easy fix. Unfortunately, this can have a negative impact by reinforcing a blame culture.

"Effective questioning and learning of lessons require a safe space and social media eliminates that."

It added: "Encouraging a greater understanding of the role of public bodies, how decisions are made and the challenges that go with it, among the public would be helpful."

A strong standards regime, combined with peer support and mentoring, is seen as crucial to counteract pressures and promote continuous improvement.

CIPFA also called for greater transparency in public decision-making by engaging the public in budget and financial strategy consultations.

Diana Melville, CIPFA Governance Advisor, said: "At a time when public trust in service delivery is fragile, compounded by budget constraints and rising demand, a targeted focus on governance and accountability is essential.

"Through our guidance, CIPFA encourages a culture of transparency, integrity and accountability.

"Ensuring good governance and harnessing data-driven risk management is needed now more than ever.

"Backed by public sector finance experts, these initiatives provide the stability that local government needs to guide itself through the incoming period of political change."

Adam Carey