An independent review of Bradford Council’s finances has said the authority has made “good progress” – but financial pressure “are likely to be in play for a number of years.”
Last year Government agreed “exceptional financial support” for the Council – meaning the authority can borrow money to fund its services.
It came at a time when the Council faced bankruptcy due to its huge budget deficit.
As part of this process, the Chartered Institute for Public Finance and Accountancy carried out a review of the Council’s finances, and issued a “best value notice.”
This notice meant there were concerns with how the authority is operating, and required Bradford Council to act “to assure the government that the authority is making arrangements to secure continuous improvement.”
This week it has been revealed that this notice has been lifted following the latest inspection by CIPFA.
The report, published on Thursday, said: “The Council has made good progress towards the key recommendations and the addressing of key risks since the 2023 review.
“Dr Lorraine O’Donnell took up the post as the new chief executive in October 2023 and has provided clear leadership and focus to address a number of critical areas including further discovery of key issues relating to the council’s financial position; re-setting the fractured relationship with the Bradford Children’s and Families Trust, and setting the council on a clear course of recovery.
“It is without doubt that the underlying characteristics of the council have changed in the last 12 months. The new CEO (and interim S151 Officer) have brought focus, rigour, pace, attention to detail and a formalised set of programmatics that have set the organisation on a different course.
“There is a laser focus on addressing the underlying aspects of financial fragility in Bradford.
“Bradford is one of the largest metropolitan districts in England, but it is clear that it needs to transition to a smaller organisation in the future. Whilst we have seen some early evidence of technology and business-enabled change, the council is only at the start of its journey of transformation and will need to ensure that it has the right structures, skills, competencies and experience to transform large swathes of the council’s functions in the future.
“We commend the council, and in particular the new CEO and the interim Finance Director for the drive, determination and attention to detail they have brought in establishing a new focus and culture for Bradford.
“This is in stark contrast to 2023 when we evidenced pockets of denial and a culture of ‘learned helplessness’ about the predicament the council found itself in: there was too much focus on looking back rather than looking ahead to solve the council’s financial problems.
“The underlying drivers of financial fragility in Bradford remain largely unchanged from the 2023 CIPFA review. Although there is a good awareness of the drivers and financial challenges, these factors are likely to be in play for a number of years.
“The impact of all the controls and new processes demonstrate that the council is making very significant progress on its improvement journey.
“(Bradford) must be commended for becoming the UK City of Culture 2025 and for securing significant Government investment for a new train station. It must also fully exploit the legacy created by the City of Culture and use this as a platform to inspire and involve as many in the community as possible. We understand that the CEO has a strong desire to deliver further growth for the city and this is to be commended.
“The longer-term outlook for the council is, in our view, positive and achievable but requires much of the organisation and its people to align, at pace, to a different set of values and culture to enable it deliver for the longer term.”
Bradford Council Leader Susan Hinchcliffe said: “We’re still in a very challenging financial position following 14 years of central government funding cuts coupled with the growing cost of children’s and adult social care. But it’s good to see the plan and approach we have put in place independently validated by CIPFA.
“I’d like to thank all the officers involved, including those in Bradford Children’s and Families Trust, for bringing forward and delivering savings proposals and ensuring the robust management of our finances. Their dedication and resourcefulness in making savings while improving services is much appreciated.
“It is pleasing that Government recognises the substantial progress made by the council to address the issues the Best Value Notice identified. They are demonstrating confidence in our ability and capacity to continue to address financial and governance challenges.”
By: Chris Young, LDRS
