Tough times ahead for Northamptonshire’s new s151
0
Northamptonshire County Council has announced the appointment of its fourth finance director in two years.
The council this week revealed its finances are improving but confirmed the key figure responsible for turning around the situation, current executive director and section 151 officer Ian Duncan, is leaving because the council is becoming a unitary.
His replacement will be Barry Scarr, currently interim director of finance at Bradford Council and former executive director of finance and deputy chief executive of Northumberland County Council.
Scarr is an experienced financial director having worked with Bradford, Sunderland, Northumberland and a number of London Councils.
Scarr starts next month with, according to a budget update to cabinet members, a forecast deficit of £5.6m for the current financial year.
That’s an improvement on the £5.8m predicted in the preceding budget forecast and down from an initial estimate pointing to £12m deficit.
Council chief executive Theresa Grant explained the departure in an email to staff: “We will welcome a new member of our leadership team in late September and unfortunately say goodbye to Ian Duncan, our current executive director (Finance) and Section 151 officer.
“In light of the confirmed timetable for the new unitary councils being 2021, Ian has decided not to extend his fixed term appointment for a further year and in consultation with us agreed that making a new section 151 officer appointment now, as early as possible in the lead up to March 2021, was in the best interests of the council.”
Duncan is staying until a handover is complete and Grant praised his work in moving the council out of a crisis that resulted in a statutory Section 114 notice being issued.
Grant said: “I would like to recognise what Ian has done in his time with us, helping us deliver the significant challenges of last year’s 2018/19 budget and supporting our improvement work.”
A major driver of this year’s financial pressure is a reliance on agency staff in children’s services, according to the council.
A council spokesman told Room 151 there is “still an awful lot of work still to be done” but measures are in place and monitoring of the council’s finances is continuing.
Duncan arrived from Trafford Council in October last year and managed to deliver an underspend for 2018-2019 of £4.5m.
The council’s turnaround included a stabilisation plan that set out savings totalling £18.2m and a £70m dispensation from the Ministry of Housing, Communities and Local Government (MHCLG) approved by ministers on 28 November 2018.
The conditions of the dispensation required the council to fund the deficit brought forward from 2017-18 and create an unallocated revenue reserve of £20m to manage the risk associated with the delivery of the plan.
A report to cabinet members last month revealed improvements included critical adult services and “favourable movements” in the budgets of other services areas such as waste.
The £4.5m balance will be transferred to a budget delivery reserve to support the council’s ongoing financial health in 2019-20.
After applying the capital dispensation, the council will have £36.8m in general and earmarked reserves.
The latest update to cabinet members said: “Although a number of pressures have emerged since the budget was set, corporate services are currently able to cover them from compensating savings and manage within their overall budget.”
Chief executive Grant acknowledged he has a tough task ahead, telling staff: “Barry will start with us on Monday 30 September and will be working with Ian in the coming weeks on the transition.
“I am sure you will join me in welcoming him to our council as we progress in our transformation journey.”
