An external governance review has praised Eastleigh Borough Council for its successful investments but warned its risk profile could ‘jeopardise its financial stability’.
The review by the Centre for Governance and Scrutiny (CfGS) and Local Partnerships (LP) was ordered by the council after it was issued a Best Value Notice (BVN) last December.
The BVN warned that as of March 2023 the council had debt 45 times its core spending power, which it had used to acquire a commercial, regeneration and housing investment portfolio.
The CfGS and LP review found that Eastleigh BC was an ‘ambitious’ council with ‘a history of successful investments.’
It said these investments had enabled the council to minimise council tax increases and successfully manage its finances, which in turn has led to a high degree of confidence in the leadership.
However, the review went on to warn that this trust can lead to processes that are ‘not as robust as they could be.’
‘When this is considered with the risk profile of the council, changes outside its control could jeopardise its financial stability.’
A council spokesperson welcomed the review and said it supported the council’s position on investment, housing and governance and provided assurance that it will continue to meet its best value duty in delivering services.
