Ellie Ames 09 May 2024

Guildford issues ‘heartfelt apology’ after £13.5m contract overspend

Guildford issues ‘heartfelt apology’ after £13.5m contract overspend image
Image: Guildford Borough Council

Guilford Borough Council is at ‘serious risk’ of failing to deliver Best Value after overspending by millions on a housing contract, reviews have found.

The Surrey authority commissioned the Society of Local Authority Chief Executives (Solace) to review both its housing governance and Best Value governance after issues emerged in 2022 and 2023, including potential fraud in its housing landlord function.

According to the Solace report, after Guildford agreed to spend £24.5m improving its housing stock in February 2022, a three-year £2.4m contract, compliant with procurement process, was awarded for testing and inspection.

But in June last year, Guildford’s newly appointed monitoring officer was told £18.9m had been spent on the contract.

By this time, a second contract had been awarded – despite whistleblowing concerns – worth £3m a year, so Solace has put the total overspend at £13.5m.

Its report has uncovered a series of risks, including a housing software system that had not had the recommended updates for eight years, making budget monitoring ‘difficult’, and a lack of permanent housing surveyors.

Two council employees were suspended and five agency workers had their contracts terminated in September.

A police investigation and separate employment investigation are ongoing.

In its Best Value governance review, Solace found Guildford was ‘at serious risk of failing in its statutory duty to deliver Best Value’.

The review also found there was no coherent improvement plan and a ‘debilitating and serious absence’ of several important strategies, plans and systems.

Guildford has committed to all Solace's recommendations, including appointing an independent assurance panel and developing an improvement plan.

Council leader Julia McShane said: ‘The people of Guildford deserve better from their council and for that we give a heartfelt apology and a commitment to put right the long-standing issues which we have uncovered.’

Solace also recommended that Waverley Council, which shares some corporate management with Guildford, can ‘assure itself that similar risks issues are not present in that authority’.

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Democratic Services, Elections & Monitoring Officer

Harborough District Council
Grade 12 £67,236 – £71,223 plus £3000pa Statutory Officer Allowance
We are looking for an accomplished and proactive leader for our vacant post of Head of Democratic Services & Elections Market Harborough, Leicestershire
Recuriter: Harborough District Council

Senior Support Worker

Oxfordshire County Council
£29065.00 - £31022.00
We’re transforming the way we deliver our frontline services to older adults in the heart of their communities to get the best outcomes possible for each and every person we work with. We do this through our commitment of ongoing professional training, Countywide
Recuriter: Oxfordshire County Council

Tree Inspections Officer

Barnsley Metropolitan Borough Council
£35,412 - £38,220
Barnsley Council have an exciting opportunity for two Tree Inspections Officers to join the team based in Barnsley. S70 2RD, Barnsley
Recuriter: Barnsley Metropolitan Borough Council

Planning Policy Officer

West Northamptonshire Council
£39,190 - £41,797
This is alongside a suite of Neighbourhood Plans and supporting policy documents for a unitary area that serves a population of 450,000. The team is supported by a dedicated Monitoring function and works collaboratively with stakeholders, the Planning Pol Towcester
Recuriter: West Northamptonshire Council

Clerical Officer Receptionist

Durham County Council
Grade 3 £25,185 - £25,989 pro rata
WHAT IS INVOLVED? We are looking to appoint a temporary part time Clerical officer/Receptionist within Business Services to provide a professional, Durham
Recuriter: Durham County Council
Linkedin Banner