Woking reveals plan to conduct staffing restructure and series of governance reviews in bid to tackle financial position
Financially beleaguered Woking Borough Council has set out plans to conduct a staffing restructure and a series of governance reviews in an effort to tackle issues that have saddled the local authority with almost £2bn in debt.
The new approach is set out in a draft 'Improvement and Recovery Programme', which the Overview and Scrutiny Committee is scheduled to consider next week (14 August).
The improvement plan – published two months on from the council issuing of a section 114 notice – focuses on four key ‘themes’: Financial recovery, Commercial, Governance and assurance, and Organisation and Service redesign.
The document says there is a need to deliver "a smaller, more efficient, more resident-focussed council with lower expenditure and a smaller budget".
In regard to organisation and service redesign, the plan says the council should aim to "collaborate with staff to identify the minimum viable provision for services to ensure robust information on implications".
It will also involve a staffing restructure to reduce the size of the organisation.
On governance, the document sets out aims to review the approach to reporting at the council and the content of reports "to ensure decisions are based on evidence and are scrutinised".
The document also details plans to implement a new "rightsized" and skill-matched legal and commercial team.
Under the plan, Woking will conduct a review of its 24 council-owned companies and launch a "major" review of commercial and company governance.
The review of company governance will involve making changes to boards and articles of association "to reduce conflicts of interest".
The legal team will work closely with the commercial ‘theme’ to improve the governance linked to the companies, according to the document.
Woking issued a section 114 notice in June in the face of a budget deficit of £1.2bn and with just £16m in core funding available in the 2023/24 financial year.
The notice also revealed that the council had racked up a debt of £1.8bn.
According to Government documents, two large commercial schemes – Victoria Place and the Sheerwater regeneration – in the council's portfolio account for the majority of its debt.
Commenting on the plan, the Leader of Woking, Cllr Ann-Marie Barker, said: “However uncomfortable the future will be, we are focused on delivering this plan, which we know, is necessary to achieve financial stability and secure services for the future.
“Our Improvement and Recovery Plan aligns with the expectations detailed in the Secretary of State’s Directions published on 25 May 2023 and draws upon the recommendations of the non-statutory external assurance review into the council’s finances, investments, and related governance.”
According to Cllr Barker, steps have already been taken to control the council’s borrowing and improve the governance of commercial investments.
She added: “There will be substantial change over the next five years to the services council delivers to residents as it becomes a smaller, leaner council focused on delivering core services to residents.
Adam Carey
