By Joe Locker, Local Democracy Reporter
A report raising “very serious concerns” over Nottingham City Council’s financial management will not be published after a public interest test went against releasing the information.
Accounting firm Ernst and Young (EY) was asked to review the Labour-run authority’s books following the uncovering of significant misspending in the council’s Housing Revenue Account in 2021.
Millions of pounds strictly intended for council housing and tenants had been wrongly and unlawfully transferred to the authority’s general fund over a series of years.
It is estimated the cost of the problem is around £51m.
So far the council has only published its own 10-page summary of the review, and said the full report cannot be made public.
In July the Local Democracy Reporting Service submitted a Freedom of Information (FOI) request to the council asking that the full report be made public on the grounds its release would be in the public interest.
A response was delayed in August while a public interest test took place to determine if the report should be published.
However, the test has now ruled in favour of not disclosing the information.
“When weighing the factors favouring disclosure against those favouring non-disclosure, the council believes the combined weight of factors favouring non-disclosure outweigh the combined weight of those favouring disclosure,” the council’s FOI team said.
“We feel it is appropriate in this case to maintain the exemption and withhold the requested information at this time.”
The requested information has been withheld under section 36 of the Freedom of Information Act, according to the council.
Section 36 relates to the potential to prejudice effective conduct of public affairs of a government department or any public authority.
It applies where complying with the request could prejudice or would be likely to prejudice “the effective conduct of public affairs”.
EY’s report said the firm found no evidence of fraudulent activity but had identified a work culture of not properly following accounting rules.
The council’s “inability to find documents” was also questioned alongside concerns over management overriding established financial controls unintentionally or “for reasons including expediency, efficiency or self-interest”.
Cllr Andrew Rule (Ind) questioned who was “running the show” after council leader David Mellen (Lab) said he too had not seen the full report during a council meeting earlier this year.
The Nottingham Independents and Independent Group said: “Given the long history of preventing public access to documents, from Robin Hood Energy to Nottingham Castle, that reinforce Nottingham Labour’s inability to run the city it is disappointing but unsurprising that the Ernst Young report remains out of public view.
“What though perhaps makes this more extraordinary is in this case the leader of the council, with a political mandate from the public to run the city, has admitted to not having seen the report or even seemingly insisting to do so.
“It really does beg the question: If no one in the political hierarchy has seen this report how can they satisfy themselves the necessary changes are being implemented to avoid the ultimate sanction of commissioners being appointed?”
