Oflog chair “profoundly aware” of pressures facing local government after interview backlash

The chair of the Office for Local Government (Oflog) has clarified his position on the circumstances behind councils issuing section 114 notices after saying comments he made in an interview with The Times were "wrongly" portrayed.

Writing in The MJ, Lord Morse said he had been misinterpreted as arguing that any financial failure in the sector could be due only to 'bad management'.

He said: "This has, quite reasonably, annoyed and alienated colleagues in the sector.

"I told The Times that, in the case of every council currently subject to formal intervention from central government, the need for intervention has been primarily attributable to a failure of governance or management rather than a shortage of money. I do not think that is a controversial view."

He added: "Indeed, I do not think I have spoken to anybody in the sector who disagrees that each of the recent cases has been principally caused by some failure of leadership, governance, management or organisational culture, rather than simply a lack of funds."  

The Oflog chair went on to say the media coverage summarised the interview as him blaming bad management.

"It also implied that I was commenting on the causes of possible future Section 114 notices or central government interventions – and that any new 'bankruptcy' could only be caused by 'bad management'", he said.

"That is absolutely not what I said, nor think. I know that issuing a Section 114 notice, which is a very serious step for a council to take, can be caused by a complex mix of a wide range of factors. And Oflog has not taken a view on the adequacy or otherwise of levels of funding to local government. It is not our role to do so."

He said he was "profoundly aware of the systemic pressures" on local government, especially in the areas of social care, SEND, homelessness and asylum.

"I take seriously the calls of warning from the Local Government Association (LGA) and other bodies about the potential consequences of those pressures. But Oflog has not been given the remit to judge the right level of funding from central government.

"Instead, it remains the role of the Department for Levelling Up to assess whether funding to each council is sufficient, and to be the first port of call for any authority that is seeking extra financial assistance."

Adam Carey