Dan Peters 22 August 2022

Clark warning over 'risky commercial practices'

Clark warning over risky commercial practices image
Image: LINGTREN.COM / Shutterstock.com.

Communities secretary Greg Clark has warned ‘some local authorities are engaging in risky commercial practices’.

Mr Clark said he had told consultancies to ‘stop advising councils to dream up complex schemes which put taxpayers’ cash at risk’.

The move follows Thurrock BC being accused of entering into secretive contracts worth over half a billion pounds and controversy when Bournemouth, Christchurch & Poole Council announced plans to establish a special purpose vehicle to which it would sell council-owned beach huts for £54m.

In a letter to firms offering councils commercial advice, seen by The MJ, Mr Clark said he was ‘concerned that some authorities look for strategies that push at the bounds of what is permitted, and sometimes seek external advice and support to implement novel and risky strategies’.

The letter read: ‘I would like to be able to trust councils to follow the spirit as well as the letter of the law and to act prudently with public money.

'I am, however, concerned that some councils are spending taxpayers’ money on external advice to engage in practices that may put public money and service delivery at risk.

‘To be clear, I recognise that many councils and advisers will be engaged in sensible, prudent activity.

'However, I hope that you will agree with me that companies should not seek to gain by helping councils pursue strategies that engage in risky financial practice.

'This includes where local authorities are taking excessive risks with novel strategies or looking for ways to circumvent the statutory bounds that are designed to constrain risk.

‘Council officers and members must also take seriously their responsibilities and not waste money by pursuing strategies that the Government must then intervene to prevent.’

Last month Mr Clark wrote to councils to confirm a tightening of rules under which local authorities could previously sell assets to companies they control.

This article originally appeared in The MJ (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Residential Worker

Essex County Council
£27934.00 - £35344.00 per annum + + 26 Days Leave & Local Gov Pension
Residential WorkerPermanent, Full Time£27,934 up to £35,344 Per Annum (includes allowance) equal to £14.48 to £18.32 Per HourLocation
Recuriter: Essex County Council

Early Years Keyworker

Royal Borough of Greenwich
£37,068 - £38,058
Want to make a difference for children with special educational needs in Greenwich? Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Early Years Area SENCo

Royal Borough of Greenwich
£39,855 - £42,324
Have you got extensive experience in working within Early Years, with a clear understanding of child development Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Young Persons Substance Misuse Service Pathfinder

Royal Borough of Greenwich
£31,524 - £32,931
Are you looking to change the lives of young people? Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Senior Regulatory Compliance Officer

Royal Borough of Greenwich
£37,068 - £38,058
You will be an apprentice embedded within the Trading Standards team. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner