Governance within councils must be improved if local public finances are to be rebuilt, a think-tank has argued.
In a new report that revealed ‘an alarming erosion of governance capacity’, think-tank Localis said English councils should recommit to the Nolan principles, which set out standards of behaviour in public life.
Local authorities must ‘create organisational cultures that embrace challenge and criticism and hold town hall leaders accountable’, the report says.
It also calls for the formation of a national body or set of local bodies to oversee the local audit system, and calls for councils to get more resources to clear the backlog of audits.
Other recommendations include more protection for monitoring officers to perform their duties, reviews of whistleblowing policies, and strengthened internal audit functions so councils are more able to identify emerging financial threats.
Localis chief executive Jonathan Werran said: ‘Many councils are already actively engaged in reform and organisational development to respond to the challenges we identified and many of the recommendations are drawn from this best practice.
‘However, there is still work to be done in universalising a reformist mindset in the sector and ensuring that an ethos of public service, combined with long-term, strategic thinking, guides local decision-making and service provision everywhere in England.’
For more on this report from Localis and Grant Thornton LLP, check out Renewing and reforming local governance
