William Eichler 12 November 2024

Council’s risk profile could ‘jeopardise’ financial stability

Council’s risk profile could ‘jeopardise’ financial stability image
Image: Ben Molyneux / Shutterstock.com.

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.

Black hole spending review image

Black hole spending review

Jonathan Werran, chief executive of Localis, reflects on what the Spending Review means for local government.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of Culture

Royal Borough of Greenwich
£81435 - £86505 per annum + n/a
Head of CultureThe Royal Borough of Greenwich understands that culture is one of our greatest strengths and is key to delivering the Our Greenwich mis England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Social Worker - Children in Care, North Essex

Essex County Council
Up to £0.0000 per annum
Social Worker - Children in Care, North EssexPermanent, Full Time£37,185 to £50,081 per annumLocation
Recuriter: Essex County Council

Senior Applications Developer

Essex County Council
Up to £500 per day
Senior Applications DeveloperContract
Recuriter: Essex County Council

Project Delivery Team Leader

Transport Scotland
£57,710 - £71,842
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification). Glasgow City
Recuriter: Transport Scotland

Project Delivery Senior Team Leader

Transport Scotland
£74,480 - £85,964
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification) Glasgow City
Recuriter: Transport Scotland
Linkedin Banner