Ellie Ames 09 May 2024

Guildford issues ‘heartfelt apology’ after £13.5m contract overspend

Guildford issues ‘heartfelt apology’ after £13.5m contract overspend image
Image: Guildford Borough Council

Guilford Borough Council is at ‘serious risk’ of failing to deliver Best Value after overspending by millions on a housing contract, reviews have found.

The Surrey authority commissioned the Society of Local Authority Chief Executives (Solace) to review both its housing governance and Best Value governance after issues emerged in 2022 and 2023, including potential fraud in its housing landlord function.

According to the Solace report, after Guildford agreed to spend £24.5m improving its housing stock in February 2022, a three-year £2.4m contract, compliant with procurement process, was awarded for testing and inspection.

But in June last year, Guildford’s newly appointed monitoring officer was told £18.9m had been spent on the contract.

By this time, a second contract had been awarded – despite whistleblowing concerns – worth £3m a year, so Solace has put the total overspend at £13.5m.

Its report has uncovered a series of risks, including a housing software system that had not had the recommended updates for eight years, making budget monitoring ‘difficult’, and a lack of permanent housing surveyors.

Two council employees were suspended and five agency workers had their contracts terminated in September.

A police investigation and separate employment investigation are ongoing.

In its Best Value governance review, Solace found Guildford was ‘at serious risk of failing in its statutory duty to deliver Best Value’.

The review also found there was no coherent improvement plan and a ‘debilitating and serious absence’ of several important strategies, plans and systems.

Guildford has committed to all Solace's recommendations, including appointing an independent assurance panel and developing an improvement plan.

Council leader Julia McShane said: ‘The people of Guildford deserve better from their council and for that we give a heartfelt apology and a commitment to put right the long-standing issues which we have uncovered.’

Solace also recommended that Waverley Council, which shares some corporate management with Guildford, can ‘assure itself that similar risks issues are not present in that authority’.

Selling the family silver image

Selling the family silver

Ryan Swift, research fellow at IPPR North, urges the next Government to stop the mass sell off of council assets.
SIGN UP
For your free daily news bulletin
Highways jobs

HR Advisor

West Northamptonshire Council
£33,369 - 36,163
Your experience will include having worked with a range of managers providing advice and guidance on HR policy and procedure. Ideally you will have supported organisational change initiatives or service restructures. While public sector experience wou Northampton
Recuriter: West Northamptonshire Council

2x Accounting Technician - WMF1101e

Westmorland and Furness Council
£32,076 - £33,024
We are looking for 2 Accounting Technicians to provide support to Principal Finance Officers and Finance Managers. Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Business Support Administrator - Adult Social Care - WMF1099e

Westmorland and Furness Council
£24,294 - £24,702
Join our dedicated team as a Business Support Administrator supporting Adult Social Care Penrith, Cumbria
Recuriter: Westmorland and Furness Council

Passenger Carrying Vehicle Driver - WMF1104e

Westmorland and Furness Council
Salary £26,421 - £27,334 Pro rata (£13.69 - £14.17 per hour)
We are CTOT, Westmorland and Furness Council’s in-house Transport Operational Team Penrith, Cumbria
Recuriter: Westmorland and Furness Council

Social, Emotional and Mental Health (SEMH) Specialist Practitioner

North Yorkshire Council
From £29,269 up to £32,076 per annum pro rata
The Social, Emotional and Mental Health (SEMH) Team is part of the Inclusion Service SEND Hub Hambleton, Selby
Recuriter: North Yorkshire Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.