Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, pursuant to the Answer of 1 November 2022 to Question 72914, when the external assurance review of BCP Council's governance and finance arrangements will begin; who will conduct the review; whether local Members of Parliament will be able to give evidence; whether the hearings will be in public and whether the report will be published.
Answered by Lee Rowley
The Department continues to make progress on the necessary arrangements for an assurance review of Bournemouth, Christchurch and Poole (BCP) Council’s governance and finance arrangements and an assessor will be appointed in due course. I will write to local MPs once the appointment has been made and the review has started.
BCP’s external assurance review will be led by a sector expert and, whilst the review will not be conducted through public hearings, the assessor will speak with key officers and members, review relevant documentation and consider any representations from other sources (as they deem necessary) – I expect and will ask for the assessor to contact members of parliament as part of this process. The final report will be publicly available and published on GOV.UK.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, if he will extend the deadline of 30 September 2022 for the submission of an application by Bournemouth, Christchurch and Poole Council for a capitalisation direction for financial year 2022-23; and if he will require an external assurance review of that Council's finances and governance arrangements.
Answered by Lee Rowley
The former Minister for Local Government wrote to Bournemouth, Christchurch and Poole (BCP) Council on 02 September 2022, indicating Government's in-principle decision agreeing to provide the Council with up to £20 million of support in the financial year 2022/23 through the Exceptional Financial Support process.
As conditions of this in-principle support, the council are required to produce a full plan for addressing their 2023/24 budget gap and beyond and will be subject to an external assurance review of their governance and finance arrangements. My officials continue to discuss the latest position of the council with officers.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, pursuant to the Answer of 27 June 2022 to Question 22339 on Beach Huts: Property Transfer and with reference to his Department's statutory guidance entitled Guidance on flexible use of capital receipts, published on 11 March 2016, whether Bournemouth Christchurch and Poole Council has submitted details of its planned flexible use of capital receipts in the financial year 2022-2023 as of 29 June 2022.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The Government issued the Flexible Use of Capital Receipts direction on 4 April that allows local authorities to use the proceeds of asset sales to fund projects for transformation and efficiency. This extends the flexibility that has been in place since 2016. A new condition was introduced that requires local authorities to send specified details of their planned use of the flexibility to DLUHC, in advance of its use. This is to make sure there is transparency and allows government to effectively monitor the use of the flexibility. Local authorities must comply with all conditions of the direction in order to use the flexibility.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make it his policy that limited companies owned and controlled by local authorities in England be required to have at least two independent directors; and if he will make a statement on the transparency and accountability of such companies to local payers of council tax.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Local authorities are autonomous public bodies responsible to their electorate for the decisions they take. They have a duty to ensure good financial management and governance, including clear audits on how the local authority is allocating its funding. Concerns about how the council uses taxpayers' money or alleged impropriety in the handling of funds can be raised directly with the local authority's independent auditor. The Government considers the need to directly intercede with authorities only where it is appropriate and necessary to do so.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, pursuant to the Answer of 16 June 2022 to Question 16828 on Beach Huts: Property Transfer, if he will publish the (a) policy objectives and (b) intent and spirit underpinning the Government's extension of the freedoms provided; and what the process is for him to be notified of any indication that authorities are not using the direction as planned.
Answered by Kemi Badenoch - Leader of HM Official Opposition
From April 2022, the Government has extended the flexibility for authorities to use capital receipts to fund transformation projects that produce long-term savings or reduce the costs of service delivery until 2023-24
It is for local authorities to make sure that they apply the flexibility correctly and have regard to the Guidance on Flexible Use of Capital Receipts. The guidance is clear that the flexibility is to allow authorities to use the proceeds from the sale of assets to fund transformation and release savings. Authorities must appropriately comply with the rules and guidance, and adherence should be subject to internal scrutiny and review by auditors
The Government is now carefully considering whether amendments are needed to the direction and guidance to make sure the freedoms are used in the spirit and intent with which they are provided.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, if he will intervene to prevent (a) Bournemouth, Christchurch and Poole Council selling its portfolio of beach huts without inviting open market bids and (b) a company owned and controlled by that Council from acquiring the beach huts with debt finance; and if he will make an assessment of the potential effect of that transaction on that Council's compliance with his Department's guidance on the flexible use of capital receipts.
Answered by Kemi Badenoch - Leader of HM Official Opposition
We want to support local authorities to invest in projects that increase efficiency and deliver future savings.
On 4 April, the government announced details under which it would extend the general direction that permits receipts from asset disposals to be used to fund the revenue costs of projects that reduce costs and improve service delivery. The direction issued will allow authorities to continue to use this freedom until 2024/25.
Local authorities are responsible for ensuring they comply with the direction and guidance, and will need to demonstrate - including to their auditors - that they have used the flexibility appropriately.
Further, the government expects authorities to act within the intent and spirit in which these freedoms are provided. If there are indications that authorities are not using the direction as intended, we will carefully consider what further action is needed.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, if he will take steps to require that overview and scrutiny committees established by local authorities in England are chaired by a councillor chosen by opposition councillors, or where there are no opposition councillors, chosen solely by backbenchers.
Answered by Kemi Badenoch - Leader of HM Official Opposition
On 7 May 2019, the government published statutory guidance for local and combined authorities in England that sets out the role of scrutiny committees in holding authorities to account over local decision-making.
The guidance advises on how to select committee members and chairs to encourage effective and independent scrutiny. While there are proportionality requirements that must be met, the selection of the chair and other committee members is for each authority to decide for itself. Members of the executive cannot be members of a scrutiny committee.
The guidance states that chairs should pay special attention to the need to guard the committee’s independence. Importantly, however, they should take care to avoid the committee being, and being viewed as, a de facto opposition to the executive.
The guidance recognises that authorities have democratic mandates and are ultimately accountable to their electorates.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, if he will call in for his determination planning application number 8/21/0207/FUL to Bournemouth, Christchurch and Poole Council for the construction of an incinerator on green belt land at Hurn; and if he will make a statement.
Answered by Stuart Andrew - Shadow Secretary of State for Health and Social Care
We have received requests to call-in the application in question. These are being considered and a decision will be issued in due course.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, whether it is the Government's policy that a local authority in England should be able to set up a company in which it holds 100 per cent of the shares for the specific purpose of buying council owned assets with money provided on loan from government and private sources; and if he will make a statement.
Answered by Eddie Hughes
Local authorities are responsible for their own capital strategies and remain accountable to their electorate for their decisions. They may invest and lend to companies to deliver capital projects within their local objectives, but must appropriately comply with the Prudential Framework to make sure that such decisions are prudent, affordable and comply with the Best Value duty. Local authorities should not use companies to circumvent the requirements of the capital framework.
On 28 July we announced that we are strengthening the capital system to support effective, sound capital decisions that facilitate local objectives and government priorities and makes the best use of taxpayer's money. Our approach includes local authority companies and complex capital transactions. One of the ways in which we will be addressing local authority company concerns is through a review on governance and skills, which seeks to identify and address governance issues in local authority borrowing and investing, including where companies are used. Furthermore, we maintain close engagement with the Chartered Institute of Public Finance and Accountancy (CIPFA) and they are producing best practice guidance for local authorities on council-owned companies which will focus on strengthening risk management and internal monitoring and assurance processes. The guidance will be available early 2022.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, whether his Department's policy on the flexible use of capital receipts by local authorities in England includes using the receipts from the sale of capital assets to a local authority controlled company for the purpose of funding current revenue expenditure; and if he will make a statement.
Answered by Eddie Hughes
The current statutory guidance on Flexible Use of Capital Receipts which is applicable until 31 March 2022 details that qualifying expenditure is expenditure on any project that is designed to generate ongoing revenue savings in the delivery of public services, transform service delivery to reduce costs, or transform service delivery in a way that reduces costs or demand for services in future years for any of the public sector delivery partners. Within this definition, it is for individual local authorities to decide whether a project qualifies for the flexibility as they are best placed to decide which projects will be most effective for their areas. Government is not able to provide advice.
Each local authority’s Section 151 officer has statutory responsibility for proper administration of financial affairs; and authorities using the flexibility will need to satisfy their auditors that they have complied with the Direction and supporting Statutory Code in the normal way. The Code requires local authorities to prepare a strategy setting out the amounts spent on allowable projects on a project by project basis and to get this approved by full Council or the equivalent. This can be done as part of the annual budget setting process.
It was announced as part of the local government finance settlement in February 2021 that the Department would extend the flexibility to use capital receipts for further three years and at the time we said we would follow up with the details of the flexibility. Information on the parameters beyond 31 March 2022 are still in the process of being finalised. We understand that local authorities need time to plan for their spending over the years and will publish these details shortly.