By Joe Locker, Local Democracy Reporter
The leader of Nottingham City Council has agreed there is an “overwhelming need for total transparency” after the authority was ordered to publish a secret report raising serious concerns over its finances.
Accounting firm Ernst and Young (EY) was asked to review the Labour-run authority’s books after unlawful spending was uncovered in the council’s Housing Revenue Account in 2021.
Money strictly intended for council housing and tenants had been wrongly and unlawfully transferred to the authority’s general fund over a series of years, and the cost to make amends is estimated at around £51m.
While the council published its own 10-page summary of the review, it said the full report could not be made public because it was of a technical nature and officers needed a “safe space” to consider it.
However a six-month battle between the Local Democracy Reporting Service and the council resulted in the Information Commissioner’s Office (ICO) ruling in favour of a full disclosure of the report following an appeal.
During Full Council on Monday (January 15) Cllr Kevin Clarke, the leader of the Nottingham Independents and Independent Group, said: “Will the Leader of the Council express his gratitude to the efforts of the Local Democracy Reporting Team who have now secured public access to the full version of the much-requested Ernst Young report as I’m sure he’s dying to read it as much as we are?”
Cllr David Mellen (Lab), the council leader, said: “I’ve been clear in previous responses in this chamber that the Ernst and Young report commissioned by our corporate director of finance and resources was to look at the council’s compliance with accounting controls and ring-fenced funding.
“I am told it is a lengthy technical report commissioned by officers, the full report has not been shown to me as yet, nor to any councillor.
“The finance director produced an executive summary of the report which was presented to senior councillors as well to the Audit Committee.
“The rationale behind this decision not to publish the full report was technically supported by the Information Commissioner, however given our financial challenges currently I agree there is an overwhelming need for total transparency for everyone to have access to the information in the original report.
“I’m also of the opinion too much time has been spent discussing whether or not the report should be shared, both in this chamber and other places.
“I’m certain everyone in this chamber shares my commitment to openness and transparency. We face many challenges as a council, and as public servants it is right we answer questions from our citizens, our fellow councillors and the media.
“I’ve never shied away from being honest and upfront, I’ve never ducked an interview or been anything less than open as far as I’m able. I look forward to seeing the report.”
In the ICO decision notice Christopher Williams, Senior Case Officer, said the publicly documented concerns about the council’s financial management “provide legitimate and demonstrable grounds for public concern and a valid public interest argument in favour of disclosure in this case”.
The council says it will fully comply and publish the report within 35 days.
Cllr Mellen added: “There is a lot of thanks being suggested to our media colleagues today who are in the gallery, and I’m sure they do an excellent job and getting the truth and reporting it. It is what they are paid to do.
“I’m glad there is an interest in our political meetings here today and in other places.”
