Council finance department 'firefighting' for years

2 hours ago

Esme AshcroftPolitical reporter for Gloucestershire

News image — The report has made five recommendations to Gloucester City Council

Getty Images Drone shot of Gloucester Cathedral in the sunshine. Images shows nearby houses and businesses and green spaces. — The report has made five recommendations to Gloucester City Council

The finance department at a Gloucestershire council has been "firefighting" for the past three years according to a report by the Local Government Association (LGA).

Last year, Gloucester City Council found it had a £7m deficit and no cash reserves, and was last month given a £15.5m bailout from the government to improve its financial position.

While LGA investigators praised the "dedication and professionalism" of finance staff, it found the team has been suffering from "insufficient capacity, high vacancy rates and a lack of structural clarity".

Council leader, Jeremy Hilton, said the review provided a "frank assessment of where improvements are needed".

He has promised to invest in the "capacity and capability" of the team.

"Stretched thin"

The LGA review was commissioned by the city council after its troubled financial position came to light last autumn.

Leaders have said the 2021 cyber attack, poor investment performances and higher interest rates on borrowing have all contributed to its fiscal situation.

LGA investigators found the disruption of the attack and staff turnover have undermined the department's resilience, and confidence in the finance team is "particularly low".

The review describes the department as a "collection of 'unsettled' individuals rather than a team", which have been "stretched thin" for the past three years.

It highlights five areas which need "urgent" attention, including a new internal structure, improved processes, better performance management and an overall change to culture.

Head of Finance and Resources at the council, Alison Turner, said staff have shown "real commitment in challenging circumstances" and the authority is now "focused on giving them the structure, support and tools they need to succeed".

Jon McGinty, Head of Paid Service, added: "We are now taking decisive action to put the right structures, systems and leadership in place, creating a more resilient, proactive service that supports the whole organisation."

"Deeply worrying"

But opposition groups have raised serious concerns about the findings of the report and the time it has taken for it to be made public.

Labour group leader, Terry Pullen described the council leadership team as "secretive" and "disgraceful" for waiting three months to publish the document, and claimed skills and staffing shortages are present in other departments too.

"To say that the finance team is firefighting is only the tip of the iceberg," he added.

"The whole council is firefighting and unable to effectively prove the services the public pay for."

Leader of the Community Independent Group, Alastair Chambers, said the report "paints a deeply worrying picture" of the city's finances and claims staff have been "failed" by the system around them.

"These findings cannot simply be brushed aside," he added.

"The recommendations must now be implemented in full, and councillors must ensure proper scrutiny of how this situation was allowed to develop."

Last week the council agreed to increase it's section of the council tax bill by the maximum 2.99% from April – the equivalent of £7 a year for a Band D property.