Intervening to Address Financial and Governance Issues at Birmingham City Council
Introduction
In a recent announcement, the Leveling Up Secretary, Michael Gove, revealed government proposals to tackle serious financial and governance problems at Birmingham City Council. The council’s admission of its retroactive equal pay obligation, estimated at £760 million, along with an annual budget shortfall, prompted the government to intervene and protect the interests of Birmingham residents and taxpayers. This intervention includes the appointment of commissioners and the launch of a local inquiry to investigate the root causes of the challenges faced by the local authority.
The Need for Intervention
Michael Gove did not shy away from highlighting Birmingham City Council’s record as one of ineffective, inefficient, and unaccountable governance. The council’s failure to fulfill its basic duties has left residents disappointed and created a pressing need for intervention. When local leaders fail, it is the residents who bear the brunt of the consequences. The government’s proposed intervention aims to protect the interests of the Birmingham community and restore certainty to the sector.
The Proposed Package of Measures
The package of proposals, if implemented, seeks to empower commissioners to provide advice, challenge the council, and make decisions directly if necessary. The commissioners would be granted powers relating to governance, strategic decision-making scrutiny, finances, and senior appointments. This multi-faceted approach aims to address the financial and governance issues plaguing Birmingham City Council effectively.
Specific actions would be enforced through directions issued to the council, including the preparation and implementation of an improvement plan within six months. This plan intends to restore the council to a sustainable financial footing. By holding the council accountable and setting clear expectations, the proposed measures provide a roadmap for positive change.
Local Inquiry and the Need for Fundamental Questions
The government’s proposed local inquiry seeks to delve into the fundamental questions surrounding the development of Birmingham’s problems. It aims to examine the council’s ongoing management of the problems identified in Lord Bob Kerslake’s independent review in 2014. This review, commissioned after the ‘Trojan Horse’ investigation into several Birmingham schools, shed light on deep-rooted problems that successive administrations had failed to address.
The review highlighted a culture of sweeping problems under the rug rather than tackling them head-on. By extending the inquiry to include both governance and service delivery, the government aims to identify systemic issues and pave the way for long-lasting reforms.
Representation Period and Stakeholder Engagement
To ensure that the views of interested parties are taken into account, a representation period of five working days has been established. This period allows stakeholders to provide input and share their perspectives before a final decision is made on whether to intervene. Engaging stakeholders in the decision-making process is crucial for transparency and legitimacy.
Max Caller CBE as the Preferred Candidate for Intervention
Max Caller CBE, an experienced local government professional and former commissioner, has been named as the preferred candidate to lead the intervention if the package of proposals is implemented. Max Caller’s vast experience, including previous interventions in various local authorities, equips him with the necessary expertise and knowledge to guide Birmingham City Council through this critical phase.
Furthermore, Max Caller has worked with Birmingham City Council in the past as one of its non-executive advisors following a non-statutory intervention. This existing familiarity with the council’s operations and challenges positions him well to understand the complexities and intricacies of the situation.
Background and Context
Before proposing the intervention, the government requested an independent governance review in April after concerns were raised by various bodies such as the Department for Education’s Social Care and Local Government Ombudsman, Housing Ombudsman, and Special Educational Needs and Disability Commissioner. These concerns centered around governance and service delivery at Birmingham City Council.
Subsequently, the review was expanded to include the faulty implementation of a new IT system and the council’s handling of its equal pay obligation. A letter sent in August sought assurances about the council’s compliance with its Best Value Duty regarding equal pay decisions, but no response has been received to date.
The Way Forward
The proposals put forward by the Leveling Up Secretary present a clear path forward for Birmingham City Council. By appointing commissioners and launching a local inquiry, the government aims to bring about much-needed change and restore confidence in the council’s ability to govern effectively.
The involvement of commissioners, with their wide-ranging powers and expertise, will ensure that the council receives the guidance and scrutiny required to overcome its financial and governance challenges. Additionally, the local inquiry’s findings will provide valuable insights into the systemic issues that have hindered the council’s progress in the past.
Ultimately, the range of measures being proposed demonstrates the government’s commitment to protecting the interests of Birmingham residents and taxpayers, fostering accountability, and delivering positive outcomes for the community.
Summary
The Leveling Up Secretary, Michael Gove, has announced government proposals to intervene at Birmingham City Council in order to address serious financial and governance issues. The council’s admission of its retroactive equal pay obligation and annual budget shortfall prompted the government to take action to protect Birmingham residents and taxpayers.
The proposed package of measures includes the appointment of commissioners and a local inquiry. Commissioners would be empowered to provide advice, challenge the council, and make decisions directly if necessary. These measures aim to address the council’s ineffective governance and financial problems.
The local inquiry would investigate the root causes of Birmingham’s challenges, building upon Lord Bob Kerslake’s independent review conducted in 2014. This review highlighted deep-rooted problems that successive administrations had failed to address, emphasizing the need for fundamental change.
A representation period has been established to allow stakeholders to provide input before a final decision is made. Max Caller CBE has been identified as the preferred candidate to lead the intervention if the government’s proposals are implemented.
The government’s intervention, if successful, would pave the way for positive change, accountability, and a sustainable financial footing for Birmingham City Council. By addressing the systemic issues that have hindered progress in the past, the government aims to restore confidence in the council and deliver positive outcomes for the community.
—————————————————-
Article | Link |
---|---|
UK Artful Impressions | Premiere Etsy Store |
Sponsored Content | View |
90’s Rock Band Review | View |
Ted Lasso’s MacBook Guide | View |
Nature’s Secret to More Energy | View |
Ancient Recipe for Weight Loss | View |
MacBook Air i3 vs i5 | View |
You Need a VPN in 2023 – Liberty Shield | View |
Leveling Up Secretary Michael Gove today (September 19, 2023) announced government proposals to address serious financial and governance issues at Birmingham City Council.
On 5 September, Birmingham City Council issued a ‘section 114 notice’ – an admission of its retroactive equal pay obligation, currently estimated by the council at £760 million, along with an annual budget shortfall which includes the costs of implementation. an IT system was too important for the city council to manage.
in a oral statement to Parliament, Leveling Up Secretary Michael Gove explained that the Government intended to intervene at Birmingham City Council, subject to a representation period of five working days, to protect Birmingham residents and taxpayers. The proposals include the appointment of commissioners and a local inquiry to investigate the root of the problems facing the local authority.
Leveling Up Secretary Michael Gove said:
Birmingham City Council’s record is that of ineffective, inefficient and unaccountable government. You are failing in your basic duties.
When local leaders fail, residents are the ones left disappointed. This can’t continue.
I can announce that I am writing to the council today to outline my proposal to intervene and appoint commissioners, and that I intend to launch a local inquiry.
I do not take these decisions lightly, but we must protect the interests of Birmingham residents and taxpayers and provide certainty to the sector.
The package of proposals, if implemented, would see commissioners provide advice and challenge the council while making decisions directly, if necessary. They would be given powers related to governance, scrutiny of strategic decision-making, finances and senior appointments.
Directions would be issued to Birmingham City Council requiring them to take specific actions, including preparing and implementing an improvement plan within 6 months, to return it to a sustainable financial footing.
The local inquiry could look at the fundamental questions about how the problems facing Birmingham have developed and would examine the council’s ongoing management of the problems identified in Review of the authority by Lord Bob Kerslake in 2014and subsequent non-statutory intervention.
The independent review, commissioned after the ‘Trojan Horse’ investigation into several Birmingham schools, found that successive administrations had failed to address deep-rooted problems and highlighted a culture of sweeping problems under the rug, rather than tackling them head on. .
A representation period for proposals of five working days, until September 26, has been set to ensure that the views of interested parties are taken into account before a final decision is made on whether to intervene.
Max Caller CBE, an experienced local government professional and former commissioner, has been named as the preferred candidate to lead the intervention if the package of proposals is implemented.
The proposal comes after Local Government Minister Lee Rowley asked then council leader Councilor Ian Ward to commission an independent governance review in April. He acted after the Department for Education’s Social Care and Local Government Ombudsman, Housing Ombudsman and Special Educational Needs and Disability Commissioner raised concerns about governance and service delivery at the council.
This review was extended to include the faulty implementation of a new IT system and the council’s handling of its equal pay obligation. A further letter was sent to Councilor John Cotton, leader of the council, in August, seeking assurances about whether the council was meeting its Best Value Duty in relation to equal pay decisions, to which there has been no response to date.
More information
Max Caller CBE was the chief executive of the London Boroughs of Hackney and Barnet and chairman of the Local Government Boundary Commission for England. He has experience of multiple interventions, including having been Chief Commissioner in Slough, Chief Inspector for the Liverpool and Northamptonshire Best Value Inspections, and Commissioner in Tower Hamlets.
Max also has experience working with Birmingham City Council, having been appointed by the City Council as one of its non-executive advisors following non-statutory intervention.
—————————————————-