Strong warning to BCP Council over lower council tax rise

A letter from Grant Thornton to the senior council officers delivered a strong warning over moves by the Conservative leadership to reduce the previously proposed increase in council tax.

Despite the Conservative administration publishing budget plans with a council tax rise of 4.99 per cent, Cllr Drew Mellor and his deputy, Cllr Philip Broadhead, said they were working to table a lower increase.

However, Cllr Mellor resigned as leader of the council on Monday with immediate effect, with Cllr Broadhead becoming interim leader.

Cllr Mellor referenced the auditor’s latest letter as the “last straw” in a statement confirming his resignation. He also criticised civil servants, ministers and the local authority’s own officers.

• IN FULL: Statement from Drew Mellor on decision to resign as BCP Council leader 

The correspondence from Peter Barber, key audit partner at Grant Thornton, was published as part of the papers for next week’s budget setting full council meeting.

Writing to BCP Council’s chief executive Graham Farrant and chief finance officer Adam Richens on February 10, Mr Barber said: “We are concerned on a number of levels about the possibility of any late amendments to the current indicative budget.

Peter Barber of Grant Thornton (Image: BCP Council)

“Firstly, from a governance perspective, any last minute changes provide limited opportunities for officers to fully digest the impact of the changes and advise decision makers as to whether the change is in the best interest of the council.

“Secondly, should any amendment be an ‘innovative but higher risk’ proposal along the lines of others that have been attempted previously, then it is crucial, not least given the previous experiences, that proper due diligence is given to the risks and rewards and legality of such a decision.

"We are highly concerned that any last minute amendment is introduced without appropriate advice and extra checks and balances to ensure it is in the best long term interest of the council.

“In our view, any amendment to the current budget proposals currently under consideration will inevitably mean that members are required to consider them at short notice, with limited preparation and with limited assessment of the potential risks of such a course of action. This in turn gives rise to a concern that the council may be putting at risk its future financial sustainability by entering into high risk projects without the proper and full consideration that good governance requires.”

In relation to council tax, Mr Barber said pursuing a 2.99 per cent council tax rise rather than the proposed 4.99 per cent would make the delivery of the 2023/24 budget “more challenging”, and have an “even bigger impact” on the medium term financial strategy.

Mr Barber’s letter said: “If any changes to the current budget proposals are made, I would expect the senior statutory officers to reflect on how this may impact on their statutory responsibilities.”

He said he would welcome further assurances from Mr Farrant and Mr Richens, adding that Grant Thornton will “continue to keep under close review the council’s financial sustainability”.

• Read more: BCP Council leader slammed for resigning week before budget

The letter from the auditor is due to be discussed at an audit and governance committee meeting on Thursday, the council has confirmed.

Yesterday, Cllr Broadhead said he was working with colleagues across the council to "keep tweaking the budget till the last possible opportunity".

In a statement, Mr Farrant said: "We are taking this letter seriously and have been liaising with the external auditor for some weeks and will continue to do so.

"As officers it is our duty to ensure councillors make informed decisions and that the council acts within its governance and legislative framework.

"We will continue to work with councillors to deliver a balanced budget and will work with both the acting and new Leader to address the concerns set out in the letter.”