CIPFA “struck” by adversarial language between members and officers at unitary, calls for action plan to address significant governance problems

Middlesbrough Council has agreed to address the findings of a review of culture and governance carried out by the Chartered Institute of Public Finance & Accountancy (CIPFA), which uncovered "significant issues" involving divisions between the unitary's members and officers.

The report authors identified a number of issues, including "mistrust and dysfunction between Members and Officers" and reported that they were “struck” by the "adversarial" language used.

In response to CIPFA's report, the council's Mayor and chief executive both agreed on pursuing a plan to "strengthen the culture of the organisation".

Issues arose at the historically Labour-held local authority when an independent Mayor and a majority of Independents and Conservatives gained control of the council in 2019.

According to CIPFA, a "clash of cultures" ensued due to the previous administration having to adapt to the 'entrepreneurial' style of the new administration.

The divide culminated in the chief executive being unwilling to sign the Annual Governance Statement, stalling the budget for 2023.

Problems were said to have been compounded by an influx of newly elected members with "very limited" local government experience following the 2019 elections.

Despite training taking place, there remains an issue with member and officer understanding of the scope of their roles and the boundaries between them, CIPFA said.

According to the report, the discord has led to several personal attacks made by members against other members and some officers, both in the council chamber and on social media. Officers have also reported feeling bullied and intimidated.

Issues with communication were also highlighted by CIPFA. “Members and Officers can be quick to become defensive, and interviewees described scenarios where discussions have become confrontational”, the report noted.

In May 2021, some members of the Executive resigned as a group, citing the Mayor's behaviour towards them as an issue.

The external auditor identified the following eight issues of concern:

• Clash of cultures – "there is a disconnect between the 'administrative' style of the previous administration and the 'entrepreneurial' style of the new administration. Instead of these coming together to form a new culture, positions have become entrenched over three years, leading to mistrust and dysfunction between Members and Officers."
• Covid – "successive lockdowns have made it harder for positive relationships to be built and have contributed to miscommunication between Members and Members and Members and Officers."
• Roles and responsibilities – "there is a lack of clarity around the roles and responsibilities of Members and Officers, which leads to blurring of boundaries, and some overreach."
• Communication – "Language used is often adversarial, causing people to become defensive and more entrenched in their original position."
• Member training – "all Members are offered training, but the take-up is inconsistent. Some Members complain about the quality of training and whether it meets their needs. Some Members do not demonstrate that they fully understand their role or that they have sufficient grasp of procedural issues."
• Officer morale – "the issues highlighted in this report are having a negative impact on staff morale. This needs to be addressed as it is beginning to have an impact on staff turnover and recruitment."
• Resolution of outstanding FOIs and complaints – "a large volume of FOI requests and complaints have been issued by Members. Officers report that this is higher than previously experienced and causes pressure on resource. The length of time taken to resolve these issues, adds to the mistrust between Members and Officers."
• Focus on the past – "some Members are focused on issues that occurred in the past, sometimes many years ago, which is a blocker to making progress in the future."

In light of the challenges, Labour councillors have called for Government intervention. However, CIPFA said there is an opportunity to make improvements without intervention, "provided that an acceptance of the issues, and a willingness to make positive changes, can be achieved".

The Mayor and chief executive have said they "fully accept" CIPFA's findings and have now scheduled a council meeting for 19 October to address the issues identified by CIPFA.

The pair are set to ask councillors to agree on the creation of an 'Improvement Board' comprising statutory officers, elected members, CIPFA and an independent chair in order to agree on and deliver an action plan.

The proposed board members include Independent, Conservative, and Labour councillors. Mark Edgell of the Local Government Association has been chosen as chair.

Councillors will also be asked to agree that the action plan be reported to the council for noting in November 2022.

Adam Carey