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You can find the current article at its original source at https://www.theguardian.com/society/2018/mar/15/scrap-northampton-county-council-inspectors-say
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| Scrap Northamptonshire county council, inspectors say | Scrap Northamptonshire county council, inspectors say |
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| Northamptonshire county council (NCC), which declared effective bankruptcy last month, should be scrapped, a devastating inspectors’ report into widespread financial and management failures at the authority has recommended. | Northamptonshire county council (NCC), which declared effective bankruptcy last month, should be scrapped, a devastating inspectors’ report into widespread financial and management failures at the authority has recommended. |
| The council’s leader, Heather Smith, stood down after the report’s publication, writing in her resignation letter that she blamed “vicious public insults by four local MPs”, adding “you cannot win” if the “machinery of government is turned against you”. | The council’s leader, Heather Smith, stood down after the report’s publication, writing in her resignation letter that she blamed “vicious public insults by four local MPs”, adding “you cannot win” if the “machinery of government is turned against you”. |
| A government-appointed investigator’s report said the problems at the council were so deep-rooted that it was impossible to rescue it in its current form, and to do so “would be a reward for failure”. | A government-appointed investigator’s report said the problems at the council were so deep-rooted that it was impossible to rescue it in its current form, and to do so “would be a reward for failure”. |
| It recommends that ministers send in a team of external commissioners to take over the day-to-day running of the council until it can be broken up and replaced with two new smaller authorities. | It recommends that ministers send in a team of external commissioners to take over the day-to-day running of the council until it can be broken up and replaced with two new smaller authorities. |
| The lead inspector, Max Caller, said NCC had ignored a growing financial crisis at the authority, which he said had been beset by poor management, lack of scrutiny and unrealistic budget-setting. | The lead inspector, Max Caller, said NCC had ignored a growing financial crisis at the authority, which he said had been beset by poor management, lack of scrutiny and unrealistic budget-setting. |
| Explaining why he advised breaking up the council, Caller’s report says: “The problems faced by NCC are now so deep and ingrained that it is not possible to promote a recovery plan that could bring the council back to stability and safety in a reasonable timescale.” | Explaining why he advised breaking up the council, Caller’s report says: “The problems faced by NCC are now so deep and ingrained that it is not possible to promote a recovery plan that could bring the council back to stability and safety in a reasonable timescale.” |
| He added: “To change the culture and organisational ethos and to restore balance, would, in the judgment of the inspection team, take of the order of five years and require a substantial one-off cash injection. Effectively, it would be a reward for failure.” | He added: “To change the culture and organisational ethos and to restore balance, would, in the judgment of the inspection team, take of the order of five years and require a substantial one-off cash injection. Effectively, it would be a reward for failure.” |
| It was unlikely councillors and the officers had the strength of purpose to bring the council back into line, he said. “A way forward with a clean sheet, leaving all the history behind, is required.” | It was unlikely councillors and the officers had the strength of purpose to bring the council back into line, he said. “A way forward with a clean sheet, leaving all the history behind, is required.” |
| Responding to the report, Northampton North MP Michael Ellis called the management of the authority a national scandal. All seven local Tory MPs criticised the council last month saying they had no confidence in its leadership. | Responding to the report, Northampton North MP Michael Ellis called the management of the authority a national scandal. All seven local Tory MPs criticised the council last month saying they had no confidence in its leadership. |
| In her resignation letter, Smith blamed four of the MPs who had requested the inspection report for her departure. “The personal pressure of vicious public insults by four local MPs seeking to make me the scapegoat has not been pleasant for anyone to witness,” she wrote. | In her resignation letter, Smith blamed four of the MPs who had requested the inspection report for her departure. “The personal pressure of vicious public insults by four local MPs seeking to make me the scapegoat has not been pleasant for anyone to witness,” she wrote. |
| “I have continued to fight for fairer funding for Northamptonshire residents in spite of the personal attacks but, as I was told a few days ago, ‘If the machinery of government is turned against you then you cannot win.’” | “I have continued to fight for fairer funding for Northamptonshire residents in spite of the personal attacks but, as I was told a few days ago, ‘If the machinery of government is turned against you then you cannot win.’” |
| The communities secretary, Sajid Javid, said the report raised “considerable concerns” about financial management and governance at the council. “My priority is ensuring that local people receive the high-quality services they deserve and I will be considering the report in detail before outlining the action I intend to take,” he said. | The communities secretary, Sajid Javid, said the report raised “considerable concerns” about financial management and governance at the council. “My priority is ensuring that local people receive the high-quality services they deserve and I will be considering the report in detail before outlining the action I intend to take,” he said. |
| The report rejected the council leadership’s claim that it had been disadvantaged by government funding cuts and underfunded given the pressure of a growing and elderly population. Similar councils had coped with these pressures and Northamptonshire “was not the most disadvantaged shire council”, the report says. | The report rejected the council leadership’s claim that it had been disadvantaged by government funding cuts and underfunded given the pressure of a growing and elderly population. Similar councils had coped with these pressures and Northamptonshire “was not the most disadvantaged shire council”, the report says. |
| It excoriates the disastrous attempt to restructure services by outsourcing them to private companies and charities – the Next Generation programme. Poor design, chaotic management and a lack of controls and oversight meant budgeting was “an exercise of hope rather than expectation”. | It excoriates the disastrous attempt to restructure services by outsourcing them to private companies and charities – the Next Generation programme. Poor design, chaotic management and a lack of controls and oversight meant budgeting was “an exercise of hope rather than expectation”. |
| It drily notes that it was not clear whether the programme was still in existence, saying: “It would appear to have been abandoned but that is not clear.” | It drily notes that it was not clear whether the programme was still in existence, saying: “It would appear to have been abandoned but that is not clear.” |
| The council had lost control of its budgeting in 2013 after a critical Ofsted report into its children’s services forced an expensive overhaul of child protection services, and never recovered, the report says. It said the council’s approach to financial management came across as “sloppy, lacking in rigour and without challenge”. | The council had lost control of its budgeting in 2013 after a critical Ofsted report into its children’s services forced an expensive overhaul of child protection services, and never recovered, the report says. It said the council’s approach to financial management came across as “sloppy, lacking in rigour and without challenge”. |
| There was a lack of realism in business plans, and savings targets were frequently not met. Senior councillors and officials ignored or evaded criticism and challenge, it says, and budgets were set by without regard to need, demand or deliverability. “Living within budget constraints is not a part of the culture at NCC,” the report concludes. | There was a lack of realism in business plans, and savings targets were frequently not met. Senior councillors and officials ignored or evaded criticism and challenge, it says, and budgets were set by without regard to need, demand or deliverability. “Living within budget constraints is not a part of the culture at NCC,” the report concludes. |
| Although financial officials had raised the alarm about the council’s financial problems in 2015, this had been ignored by senior management and councillors. There was a culture in NCC where “overspending is acceptable and there are no sanctions for failure”, the report says. | Although financial officials had raised the alarm about the council’s financial problems in 2015, this had been ignored by senior management and councillors. There was a culture in NCC where “overspending is acceptable and there are no sanctions for failure”, the report says. |
| The council continually patched up financial holes with one-off uses of reserves, or by selling off assets and using the proceeds. The report concludes: “This is not budget management.” | The council continually patched up financial holes with one-off uses of reserves, or by selling off assets and using the proceeds. The report concludes: “This is not budget management.” |
| By the end relationships with public sector partners such as the NHS has deteriorated so much that there is a “significant level of distrust that NCC will ever be able to deliver against its promises and undertakings”. | By the end relationships with public sector partners such as the NHS has deteriorated so much that there is a “significant level of distrust that NCC will ever be able to deliver against its promises and undertakings”. |
| It noted that the councils’ staff were not to blame for the fiasco. “NCC employs many good, hardworking, dedicated staff who are trying to deliver essential services to residents who need and value what is offered and available. The problems the council faces are not their fault.” | It noted that the councils’ staff were not to blame for the fiasco. “NCC employs many good, hardworking, dedicated staff who are trying to deliver essential services to residents who need and value what is offered and available. The problems the council faces are not their fault.” |
| Last month the council issued a section 114 note – the local government equivalent to bankruptcy – because it said it could not set a balanced budget for 2018-19. | Last month the council issued a section 114 note – the local government equivalent to bankruptcy – because it said it could not set a balanced budget for 2018-19. |
| A statement from the council said: “We accept the findings and we will now be acting accordingly and responding directly to the secretary of state. | A statement from the council said: “We accept the findings and we will now be acting accordingly and responding directly to the secretary of state. |
| “While the report accepts the figures we use in arguing our case for fairer funding, it states we are in no worse position than other councils. We would argue that the sector as a whole does face significant financial challenges and we will continue to work with our local government partners to present our case.” | “While the report accepts the figures we use in arguing our case for fairer funding, it states we are in no worse position than other councils. We would argue that the sector as a whole does face significant financial challenges and we will continue to work with our local government partners to present our case.” |
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