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

Family Group Conference Coordinator WMF2787e

Westmorland and Furness Council
£34,434 - £35,412
The Family Group Conference offers a specialised service which works with families. Cumbria / Various
Recuriter: Westmorland and Furness Council

Policy, Performance and Systems Manager

Luton Borough Council
£60,379 - £63,721 a year plus £3,203 car benefit allowance
We are seeking a Policy, Performance and Systems Manager to provide strategic & operational leadership across our procurement ecosystem. Luton, Bedfordshire
Recuriter: Luton Borough Council

Senior Waste Strategy Officer

North East Lincolnshire Council
NJC31 - £41,771
You’ll enjoy working in a dynamic setting where innovation and sustainability go hand in hand. North East Lincolnshire
Recuriter: North East Lincolnshire Council

Head of Service - Housing and Homelessness Prevention

North East Lincolnshire Council
LGE02 - £65,211
Are you a proven leader with a record of transformation in housing and support services? North East Lincolnshire
Recuriter: North East Lincolnshire Council

Cook - Older Adults WMF2788e

Westmorland and Furness Council
£25,583
As a cook, you will be required to plan, prepare, and serve meals that are nutritionally balanced and meet a variety of specific dietary needs. Flookburgh, Grange-Over-Sands
Recuriter: Westmorland and Furness Council
Linkedin Banner