By Joe Locker, Local Democracy Reporter
The Government will decide whether to intervene further at Nottingham City Council by the end of January, leader Cllr David Mellen says.
The Labour-run authority was given a list of 67 requirements it needed to meet by the end of November, otherwise it would face tighter controls and potential commissioner intervention.
The council narrowly avoided Government commissioner intervention earlier this year following the failures with Robin Hood Energy and, more recently, the uncovering of a £40m misspend in its Housing Revenue Account.
Instead Sir Tony Redmond, the chairman of the Government-appointed improvement board, was granted greater powers.
In the week ending Friday, December 2, the authority had its final meeting of the year with Sir Tony, who will now report back to the Government on the council’s progress and its answers to all 67 requirements.
In January the council will find out whether the Government plans to intervene further, councillors were told during a scrutiny committee meeting at Loxley House on December 7.
“There was no indication given at the meeting as to whether our answers were sufficient or our progress was sufficient,” Cllr David Mellen (Lab), the leader of the council, said.
Michael Gove, the secretary of state for the Department for Levelling Up, Housing and Communities, will now assess the report alongside junior ministers before making a decision as to whether tighter controls are needed.
Cllr Mellen said numerous things had progressed in the three months the council was given to demonstrate it could make change at a fast pace.
These included the setting of a new budget and four-year financial plan, to reflect inflation and costs amid the cost of living crisis, as well as the decision to bring Nottingham Revenue and Benefits in-house alongside Enviroenergy and Nottingham City Homes.
A second cohort of council staff members will also undertake training in the £500,000 ‘Change Academy’, which seeks to improve working culture and train staff so that there is more internal expertise.
This, the council hopes, will reduce the need for costly consultants which can come with a price tag of up to £1,000 per day.
“We have now submitted our budget proposals, they will go to Exec Board a week on Tuesday with an intention to close the gap of this year, and for next year and to set a balanced budget for four years,” Cllr Mellen added.
“There is still some overspend this year, we have been trying to get that down, more than half of that is due to the well-earned pay increase for our staff which I believe will be given to them in their pay packet this month.
“There are also other pressures which are largely due to inflation and fuel and energy costs.
“There is a financial improvement programme drafted so that a tighter grip on spend can be kept.”
It is estimated the council has a black hole of around £15m as a result of the pay increase for staff, inflation and energy costs.
The new budget will be brought in front of executive councillors later in December.
Cllr Sam Gardiner (Lab), the chairman of the committee, asked Cllr Mellen for his view on the council’s progress.
Cllr Mellen replied to say he believes good progress has been made in 21 months, particularly in companies governance, which has seen Thomas Bow sold, Enviroenergy brought in-house and plans to bring Nottingham City Homes and Nottingham Revenue Benefits in house in the future.
“The original source of Government questioning was about management of our companies,” he said.
“And although the Ice Stadium struggles from time to time, Nottingham City Transport hasn’t got its patronage back to pre-Covid, although it is getting nearer, we have in large part responded to that request to deal with the future of each of our companies and put them on a firmer footing.”
