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

Teaching Assistant Apprentice

Durham County Council
£8 Per Hour
Teaching Assistant Apprentice Apprenticeship Level 3 - £8 Per Hour.  Fixed Term - Full Time Teaching Assistant Apprentice required
Recuriter: Durham County Council

Lunchtime Supervisor

Durham County Council
£24,796 (Pro Rata)
Lunchtime Supervisor Grade 1- £24,796 (Pro Rata) Required to start 27th April 2026   We are seeking to appoint a Lunchtime Supervisor to join our Belm Durham
Recuriter: Durham County Council

Cleaner

Durham County Council
£24,796 (pro rata)
Cleaner Grade 1, £24,796 pro rata Permanent, 10 hours The children, staff, and governors of Chester-le-Street CE Primary School are seeking a practic Chester Le Street
Recuriter: Durham County Council

Multimedia Officer

Durham County Council
Grade 9
Durham County Council
Recuriter: Durham County Council

Ceremonies Co-ordinator

North Yorkshire Council
£27,254- £29,064
Are you a ‘people person’ looking for a role where you can engage with members of the public? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner