Somerset Conservatives have claimed an independent review by the Chartered Institute of Public Finance and Accountancy (CIPFA) exposes a fundamental failure of leadership by the Liberal Democrat administration after Somerset Council was awarded just one star out of five for its financial management.
The review concluded that financial management at the authority is “weak“, with CIPFA identifying serious concerns around leadership, accountability, financial planning, internal controls, organisational culture, transformation and the council’s continued reliance on government support.
Councillor Dawn Denton, Opposition Lead Member for Finance at Somerset Council, said: “This is one of the most serious independent assessments Somerset Council could receive. After four years of Liberal Democrat control and three years running the new unitary authority, Somerset Council has been given just one star out of five by CIPFA, the UK’s leading public finance body.”
“This is not the Conservative Party saying Somerset Council has failed to get a grip. CIPFA is saying it. The Local Government Association have said it. External auditors have said it. Government ministers have said it. Time and again independent organisations have warned that Somerset Council is not moving quickly enough to secure its financial future.”
The report states that Somerset Council’s financial management is “weak”, that leadership capacity to build a more robust approach to financial management is “not yet proven“, and that transformation is not currently delivering at the pace required to secure long-term financial sustainability.
Councillor Denton continued: “CIPFA is clear that the council understands the challenges it faces. The problem is that it is still failing to deliver the solutions.”
“The report repeatedly identifies a lack of pace, a lack of accountability, weak financial management, weak controls and a failure to embed the cultural change needed to turn the organisation around.”
Responding to the claims, leader Bill Revans says: “We’ve been clear throughout that Somerset Council has a difficult inherited financial position from Somerset County Council. This rating reflects the decision by that Conservative administration to approve the use of MS Dynamics for our financial systems, in spite of repeated warnings not to do so.”
“The Somerset Council LibDem administration has worked hard to reduce the deficit from an enormous £123 million – when we declared a financial emergency – and we are now in recovery, working towards a budget without Exceptional Financial Support in 27/28.”
“All alternative routes would have led to s114 bankruptcy, double digit council tax rises and expensive commissioners running the council, asset stripping Somerset and slashing services.”
Councillor Diogo Rodrigues, Leader of the Conservative Opposition, said the findings raise questions about the millions of pounds spent on transformation activity and consultancy support since the new council was created.
“Somerset taxpayers have already seen more than £19 million spent on consultants and transformation support in just 3 years, yet CIPFA has still concluded that financial management is weak and that transformation is not moving at the pace required. Residents are entitled to ask what they have received in return.”
