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

Educational Psychologist (EP)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£53,238 - £64,512 per annum
Educational Psychologist (EP)£53,2... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

HMO ASB OFFICER

Royal Borough of Greenwich
PO1 - £41,113 to £43,680
We are looking for three HMO Anti-Social Behaviour Officers to join our Private Housing London (Greater)
Recuriter: Royal Borough of Greenwich

South-East London Fostering Hub Programme Manager

Royal Borough of Greenwich
PO6 (£54,267 - £57,402)
The role will provide strong programme management oversight, ensuring projects are well planned, effectively delivered a London (Greater)
Recuriter: Royal Borough of Greenwich

Professional Educator (Part Time, 28 hours)

Royal Borough of Greenwich
PO6 - £54,267 to £57,402
We are looking for an experienced and enthusiastic Professional Educator to join our Quality Assurance and Workforce development Service. London (Greater)
Recuriter: Royal Borough of Greenwich

Principal Lawyer Litigation and Housing

Kirklees Metropolitan Council
£53,051 to £58,258
You will join a team of experienced Lawyers, Legal Officers, and Paralegals supported by a dedicated Business Support Team. Huddersfield, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner