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

Digital Support Analyst (Field Engineer) - ACL

Essex County Council
£30685.00 - £36099.00 per annum + +26 Days Leave & Local Gov Pension
Digital Support Analyst (Field Engineer) - Adult Community LearningPermanent, Full Time£30,685 to £36,099 Per AnnumLocation
Recuriter: Essex County Council

HGV & Municipal Vehicle Technician

Ribble Valley Borough Council
Scale 5 (scp 16-19) £30,518 to £32,061 per annum
This post assists the Senior HGV and Municipal Vehicle Technician in ensuring that the Council’s vehicle fleet is maintained to a high standard. Clitheroe, Lancashire
Recuriter: Ribble Valley Borough Council

Data Performance Analyst

The Royal Borough of Windsor & Maidenhead
£39,526 - £43,613 per annum
We have an exciting opportunity for a Data Performance Analyst to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Building Control Surveyor

North Yorkshire Council
Circa up to £46k* + 10% Recruitment Payment
Shape Safer, Smarter Buildings Across North Yorkshire Selby, North Yorkshire
Recuriter: North Yorkshire Council

Building Control Surveyor

North Yorkshire Council
Circa up to £46k* + 10% Recruitment Payment
Shape Safer, Smarter Buildings Across North Yorkshire Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner