Commissioners say “much to do” in improving governance at Thurrock Council
There remains "much to do" in revising Thurrock Council's governance arrangements, but some improvement has been made to improve the council's financial circumstances, commissioners have reported.
The comments came in the second commissioners' report on Thurrock, which was completed in July but made publicly available last Thursday (5 October).
Lead commissioner Gavin Jones, who is chief executive of Essex County Council, wrote that work to improve the governance at Thurrock – which includes a recovery board – "is less mature than that focused on financial issues".
The report did, however, note that the leadership of a new monitoring officer "has provided better grip on the issues to be addressed and the council has appointed a statutory scrutiny officer".
The ensuing government intervention saw Essex County Council named as commissioner. But the Government has since reviewed the intervention approach and has stood Essex down.
Gavin Jones, Nicole Wood, executive director of finance and technology at Essex County Council, and Dr Dave Smith, former chief executive of the South Yorkshire Mayoral Combined Authority, have been appointed as individual commissioners instead.
Whitehall also commissioned a best value inspection, which revealed that a "dereliction in political and managerial leadership" and inadequate governance arrangements allowed the council to embark on a risky investment strategy that landed it in more than £1 billion in debt.
In their second report, commissioners noted some improvements have since been made in governance arrangements, specifically due to the use of a 'forward plan'.
Improvements have also come due to better oversight of decision-making by the senior leadership team and due to improved quality of financial and legal disclosure, "with strong oversight from the Monitoring Officer and Chief Financial Officer both of whom are new in post in 2023".
Problems remain in the quality of reports, the report added, with report-making remaining inconsistent and sometimes inadequate.
Draft papers are "frequently failing to set out clear options, nor demonstrate that Thurrock is complying with its Best Value Duty," the report said.
"It is also clear that the current system of Overview and Scrutiny are not yet fit for purpose," it added.
On cultural issues, the report highlighted "marked improvement" in internal communication at the council as the council now conducts an all-staff briefing regularly, which is supported by written briefings to staff and members.
However, the council's efforts to implement cultural change is "still very embryonic and lacks a compelling narrative about what has to change, why and how will it be addressed," the report stated.
Concerning financial sustainability, the report said the council still has a "considerable way to go", with many deadlines for improvements having "slipped".
The report noted: "However, the new Managing Director Commissioner and Chief Financial Officer have brought a depth of experience, with focus and realism on delivery. The last three months have seen improvements in financial leadership and capacity.
"Albeit this is substantively interim, we are confident of a sustainable way ahead with a robust model for finance due to be in place by the end of the financial year."
Overall, commissioners said there was "cause for cautious optimism" as members and officers were working well with them and are dedicated to change.
But they reserved some judgement on the long-term impact of their work, noting that many difficult decisions are yet to come and a "vast" scale of change is still required.
They added: "We are also keenly aware that more progress is required to ensure that governance, scrutiny, performance management and audit functions operate as we would expect. We will continue to place a focus on this work in the months ahead."
Formally responding to the July report, Minister for Local Government Lee Rowley said: "As you highlight in your report, it is now vital that the council focuses on what it needs to do and, as you indicate, the pace of change needs to accelerate.
"Further slippage on key issues, such as the review of the capital programme and the implementation of a robust delivery risk assessment for savings, cannot happen.
"It is also critical that the council takes all necessary steps to improve its financial position and builds on the early work undertaken to improve governance."
Rowley went on to make an order under section 86 of the Local Government Act 2000 to move Thurrock to a scheme of whole council elections from May 2025 onwards in order to bring stability and encourage "longevity in decision making".
The three commissioners are scheduled to issue a third report in December 2023.
Adam Carey
