Parish councillors warned of prosecution over alleged fiscal failures
Parish councillors at Elmton with Creswell Parish Council have been warned they could face prosecution in an independent report which revealed alleged failures at the local authority to follow fiscal rules, as well as “basic” statutory requirements.
The external report, published by the parish council, also showed that Bolsover District Council has launched legal proceedings against the parish council for failure to make payment of approximately £230,000 it owes to the district.
Bolsover has issued a court summons in order to obtain payment of the £230,000, according to the report.
The loan, which is required to be paid back to the district council, was due on 29 November.
The investigator could not find any documentation that contained authorisation from the Secretary of State for Levelling Up, Housing and Communities to have incurred loans from the district council for a term duration outside the fiscal year.
The report said that in normal circumstances, parish councillors are typically protected from the liability of the council's debts.
It continued: "However, given the large and systemic failure to follow basic legal obligations placed on the council by legislation, councillors could face potential prosecution should they be seen to have contributed to taking illegal decisions and failure to take recommended action to avert financial loss once their attention has been drawn to the issue.”
Elsewhere, the report noted that the clerk had discovered that all emails of the parish council from before August 2024 had been deleted by former officers prior to their departure.
"This course of action appears on the face to be very suspect and the reasoning for it should be investigated at the right juncture", the report said.
The Information Commissioner's Officer also informed the current clerk that the parish council had failed to respond to an information request by a member of the public made under the Freedom of Information Act 2000.
The report said: "On the balance of probabilities it is reasonable to assume that there is a high likelihood that the emails deleted were done so in order to avoid the need to produce them to the requester of information".
Overall, the report found that the parish council "has failed on multiple counts to adhere not only to the fiscal rules it has set for itself, but also failed to comply with basic statutory requirements".
These failures include the failure to adhere to the fiscal rules set out in the council's adopted financial regulations, which is a legal requirement placed on all councils by the Audit and Accountability Act 2016, the report added.
The report also highlighted the failure to set a budget for the current fiscal year, which is a contravention of the Local Government Finance Act 1992.
In addition, the report found a failure to keep its accounts in an 'income and expenditure system' required by law, and that the council did not have an established policy on investments.
"The council also engaged in governance outside of the permitted regulatory environment of the authority," the report said.
The report raised questions about disciplinary action the parish council is bringing against a councillor, noting that "this activity is non-compliant with the High Court judgement of R (Harvey) v Ledbury Town Council [2018] EQHC 1151", which sets out how councillors should be disciplined.
It said: "The High Court of England and Wales ruled that complaints must be confined to the code of conduct process as set out in the Localism Act 2011.
"In practice this means that Parish and Town Councils can take no action against a councillor other than refer the matter to the monitoring officer of the Borough/District/Unitary authority."
The report also said the council had engaged in discussion and debate on motions and items on agenda items such as 'any other business' "which is contrary to the requirements as set out in the Local Government Act 1972 which requires all business to be decided and debated on be advertised in the public notice for the meeting three clear days before hand".
The report said: "This council systematically failed in its statutory duties, resulting in breaches of multiple legislative frameworks, including but not limited to the Local Government Act 2003, the Freedom of Information Act 2000, and the Local Government finance Act 1992.
"These breaches have not only exposed the council to significant legal liability but have also imperilled the very existence of the institution."
It warned that should the council default on its obligations to the Public Works Loan Board, the repercussions "could be catastrophic".
Furthermore, it said the alleged destruction of key information and potential breaches of the 2000 Act have also put the council at risk of criminal prosecution. A spokesperson for the parish council said the local authority “is taking immediate and decisive action to address these financial matters and restore the council’s financial health”.
Cllr Amanda Davis, Chairman of Elmton with Creswell Parish Council, added: "We are fully committed to addressing the findings of the report with urgency and diligence.
“Our goal is to make the necessary corrections swiftly and ensure the future financial security of the Parish.
"We believe in the importance of transparency and community involvement. By keeping residents informed at every step, we can work together to ensure that the council is financially sound and accountable to the people it serves."
The parish council said it would “collaborate closely” with financial experts and external auditors to review and strengthen its financial systems, ensuring full compliance with all applicable regulations.
Bolsover District Council has been approached for comment.
Adam Carey
