Ministers order best value inspection at borough council

In a letter to chief executive Laura Church, James Blythe, deputy director, local government stewardship and interventions at the Ministry of Housing, Communities and Local Government, said: “…we would like direct, independent assessment of whether the authority is making arrangements to secure continuous improvement in the way in which its functions are exercised…”

He noted that a stability plan developed by the executive showed a funding gap of £33m over the medium-term to 2029-30.

The inspection will be led by Paul Najsarek, former chief executive of the London Borough of Ealing.

Mr Blythe pointed to an assessment in July last year by the Chartered Institute of Public Finance and Accountancy (CIPFA) “which highlighted weaknesses around the council’s governance arrangements and financial management that will prevent the council from addressing their significant financial challenges, including a significant projected overspend position…and a cumulative budget gap over the Medium-Term Financial Strategy period”.

The CIPFA review noted that the council, which is led by Conservative elected mayor Tom Wootton, was “already in section 114 territory and requires urgent action to avoid issuing the statutory notice” and had imprudently reduced council tax.

It said: “Two reductions in council tax and the use of council tax flexibilities resulting in a reduced council tax yield of £24 million (£19 million after freeze grants) than could have been achieved since 2010 if a maximum council tax increased had been applied."

Bedford’s Band D rate was “not an outlier, but below the average for all unitary authorities”.

In addition, a Local Government Association corporate peer challenge had previously found “good governance was being hindered by a lack of strategic clarity and the unintended consequences of previous organisational changes, with a need for more visible, collective leadership’.

There had also been concerns raised by regulator Ofsted about the delivery of children’s social care.

Mr Blythe wrote: “Given our concerns relate to broad decision-making, and whether the standards expected for effective and convenient local government are being upheld, the inspection will consider decision-making in relation to those functions, encompassing leadership, governance, organisational culture, use of resources, partnerships and community engagement, and impact on service delivery.”

CIPFA also found the lack of an income strategy combined with differing concessions and debt management arrangements had led to “a significant bad debt position”.

A Bedford spokesperson said: “This is a challenging time for councils across the UK, and we are far from the first authority to undergo a best value inspection. It will allow the Government to have confidence in our direction of travel and the culture at Borough Hall.

“The Government has made clear that it recognises that Bedford Borough is at the heart of so much of its agenda, from house-building and East West Rail to Universal Studios theme park and the UK’s biggest roadworks scheme connecting Bedford to Cambridge.

“This does not change our commitment to delivering that agenda, as well as our ongoing task of providing the best possible services to residents across Bedford Borough, with our skilled and dedicated staff.”

Mark Smulian