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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,260 - £54,507
Social Worker£... London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

S106 and Monitoring Officer

Essex County Council
£49435.1400 - £54930.6000 per annum
Maldon District Council is working in partnership with Essex Shared Services to support the recruitment of the role of a S106 and Monitoring Officer, England, Essex, Maldon
Recuriter: Essex County Council

Trainee Revenues and Benefits Officer (Part Time)

Isle of Wight Council
Career Grade 3-6, £26,017 to £29,071 per annum pro-rata (actual salary £17,227.47 to £19,249.72)
The Benefits team is currently seeking a part-time Trainee Revenues and Benefits Officers Ryde, Isle of Wight
Recuriter: Isle of Wight Council

Legal Officer

Isle of Wight Council
Grade 9, £35,572 to £38,726 per annum
Ideally you will be a qualified paralegal or will offer an equivalent qualification or experience. Newport, Isle of Wight
Recuriter: Isle of Wight Council
Linkedin Banner