Birmingham agrees to independent review of how it considers legal advice from Monitoring Officer
Birmingham City Council has accepted statutory recommendations made by its external auditors, including a call to commission an independent review of how it considers legal advice and whether its monitoring officer's advice was appropriately taken into account.
The news comes as Birmingham’s leader, Cllr John Cotton, also announced the local authority had made progress in agreeing a new pay equity system crucial to resolving the council’s equal pay liabilities of around £760m.
The local authority's auditors, Grant Thornton, made 12 recommendations in a report issued in September under Section 24 (Schedule 7) of the Local Audit and Accountability Act 2014.
In the course of their investigation, auditors Mark Stocks and Jon Roberts uncovered strained officer-members relations and found that the council's monitoring officer and city solicitor, Janie Berry, is subject to an investigation in relation to the provision of legal advice.
The auditors noted that the investigation came at the request of "some senior politicians" and that, as far as they were aware, the council had not received or commissioned legal advice that indicated Berry had provided incorrect legal advice.
As a result of their findings, the auditors recommended that the council commission an independent review of the process for receiving and considering legal advice, "including consideration of whether the Monitoring Officer's advice was appropriately taken into account and followed, and whether access to legally privileged information was appropriately safeguarded".
Responding formally to the recommendation, the council agreed to commission the independent review and that the review would "specifically assess whether the Monitoring Officer's advice was appropriately considered and followed".
All 12 recommendations have now been accepted by the council following a full council meeting on Thursday (12 October) in which members discussed the report.
In a report to full council setting out how the council should accept and implement the recommendations, the council's s151 officer, Fiona Greenway, wrote: "Delivery against these recommendations is crucial for financial sustainability and effective governance for Birmingham City Council.
"The issues raised within the External Auditor's report are significant enough to have caused them to use their statutory powers. Addressing these recommendations will re-affirm a basis for sound financial management and effective governance within the council and provide a platform from which we can address the broader challenges facing the Council and City as a whole."
Birmingham issued its first section 114 notice on 5 September, principally due to the size of its equal pay liabilities.
Berry later issued a section 5 report under the Local Government and Housing Act 1989 on 21 September over the council's failure to make a decision relating to a job evaluation (JE) programme, which resulted from three unions pulling out of an agreement.
But yesterday, Cllr Cotton, announced that the council is close to reaching an agreement with trade unions in relation to the delivery of the council’s new pay equity system.
He said: “Crucially, the three recognised trade unions are close to agreeing an addendum which will set out the agreed principles of working in relation to the delivery on the new Pay Equity System.
“It's taken a lot of hard work, perseverance, and a shared determination to get to this stage, so I want to thank everyone who has been involved in the lengthy negotiations. This option will have the support of our recognised trade unions, without which any scheme would surely collapse, leading to costly and disruptive industrial disputes.
“Now, by getting this Job Evaluation System agreed, we can help our city to move on from the equal pay liability, adopt an equitable pay grading system, and get on with building a better Birmingham for everyone.”
Adam Carey
