• Home
  • About
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

Treasury department faces uncertain future as tri-borough deal crumbles

0
  • by Colin Marrs
  • in 151 News · Treasury
  • — 30 Mar, 2017

Stephen Cowan. Photo (cropped). Hammersmith & Fulham council, Flickr

Uncertainty hangs over the future of a combined treasury and pensions department following the breakdown of a flagship shared services arrangement once lauded by former Prime Minister David Cameron.

London Borough of Hammersmith and Fulham has been unceremoniously ejected from the tri-borough partnership formed with Kensington & Chelsea and Westminster councils in 2011.

Both parties blamed each other for the collapse in the relationship.

Hammersmith & Fulham leader Stephen Cowan said the decision was “evidently a long-planned move” by the two other authorities.

He said: “We’ve had concerns for some time about the value of the ‘tri-borough’, its lack of transparency and its built-in conflicts of interest.

“In our last two budgets, Hammersmith & Fulham council found £31m in savings but the ‘tri-borough’ contributed no more than £200,000 of that, less than one percent.

“Problems with tri-borough contracts, procured by Westminster City Council, have cost Hammersmith & Fulham over £5m, including the botched contract for special needs transport that put our disabled children at risk.”

However, Westminster leader Nickie Aiken, said that although she would not have chosen to end the tri-borough arrangements, the councils were left with no option.

She said: “Both the leader of Kensington & Chelsea and I feel we are unable to continue with tri-borough when we have a partner that we do not believe is committed to it, as we are, and appears to be making their own plans to leave, without any formal discussions.”

A report to Westminster’s cabinet on Monday said that it had become apparent that Hammersmith & Fulham was making alternative plans to create its own department which would take in adult social care, public health and children services — currently shared.

Cllr Aiken said: “We can’t have that uncertainty for staff and these vital services which is why, with much regret, we have taken the very reluctant decision to terminate the joint arrangements for children’s services, adult social care and public health.”

However, she did not mention the future of the shared treasury and pensions function.

This team is understood to have a headcount of seven — one team leader plus one treasury and one pensions staff member for each borough.

A spokesman for Westminster Council told Room151: “It is too early to comment upon any particular team, but we are doing all we can to keep staff informed.”

Labour opposition councillors at Westminster said that Hammersmith & Fulham had little alternative but to look for other arrangements after delays in introducing a back office tri-borough contract with BT to provide billing, pay and pensions administration.

Cllr David Boothroyd, Labour finance spokesperson at Westminster, said: “Westminster has been done in by its own hype. Starting off with sensible proposals to share back-office staff and integrate services with neighbouring councils, they let a grand vision take priority over the practical.”

The tri-borough arrangements were praised by former prime minister David Cameron in 2011, who said shared services were a way for councils to avoid cutting front-line services.

He told the House of Commons: “Three large councils are coming together and saving £35m because they are sharing back-office services, executive teams and so on.

“Frankly, if they can do it, as large councils that have big responsibilities, many other councils should be doing it in London and elsewhere.

“Until we see that happening, I do not think it is realistic to say that it is necessary for councils to cut front-line services.”

Cllr Warwick Lightfoot, cabinet member for finance and strategy at Kensington & Chelsea, told Room151 that the two remaining councils would continue to work together and were open to other authorities joining the shared service arrangements.

Get the Room151 Newsletter

Share

You may also like...

  • Brexit threatens Manchester property fund extension Brexit threatens Manchester property fund extension 28 Jul, 2016
  • SURVEY RESULTS: Officers expect no extra cash from Fair Funding Review SURVEY RESULTS: Officers expect no extra cash from Fair Funding Review 28 Mar, 2019
  • Locals increase lending to business and residents Locals increase lending to business and residents 26 Jul, 2012
  • Warning over FCA rules aimed at preventing Woodford repeat Warning over FCA rules aimed at preventing Woodford repeat 2 Oct, 2019

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 16 hours ago

    The vaccine may help settle cash flows but inflation remains a risk: Sponsored article: Lauren Sewell examines the prospects for long-term borrowing as Brexit settles and vaccines are deployed against Covid-19. On the 9th October 2019 Whitehall sent… dlvr.it/RqZXCr pic.twitter.com/PzgOZOGQ0k

    Room151 16 hours ago

    ESG in liquidity: Sponsored article: Gavin Haywood looks at the integration of ESG in Federated Hermes’ money market funds. Federated Hermes has over 300 public sector clients invested in our AAA rated money[...] dlvr.it/RqZX5f pic.twitter.com/E87sBXsay8

    Room151 2 days ago

    New realities of investing cash and liquidity: “What to do now?”: Sponsored article: Brian Buck looks at the “unique challenge” for cash management strategies. As investors assess the ongoing impact of the pandemic on their business, levels of cash and… dlvr.it/RqVbk9 pic.twitter.com/ZElVASmEUV

    Room151 2 days ago

    Extra finance promised by the government receives a broad welcome: Sponsored article: The financial pressures facing local authorities this year continue to pose challenges for council treasurers. While the launch of the UK’s Covid-19 vaccination… dlvr.it/RqTzTF pic.twitter.com/HCjH0pyHR5

    Room151 2 days ago

    A savvy approach to managing your cash: Sponsored article: Caroline Hedges examines the need for active cash management to achieve a higher than average return. Last year saw the already mountainous pile of negative-yielding debt around the[...] dlvr.it/RqTzMK pic.twitter.com/uP0RQYTJLt

    Room151 3 days ago

    Putting alternatives at the heart of multi-asset portfolios: Sponsored article: Nick Edwardson looks at the assets that provide the “most attractive opportunities”. We believe that asset allocation is the primary driver of investment returns and that the… dlvr.it/RqQ2Qt pic.twitter.com/WLBzvRRRUQ

    Room151 3 days ago

    Thriving in the pandemic: Avoiding the stragglers: Sponsored article: George Crowdy looks at the sectors providing opportunities for sustainable investment. Throughout much of 2020, we talked about why sustainable investing has thrived in the pandemic,… dlvr.it/RqQ2NQ pic.twitter.com/dxiPWKFsPl

    Room151 3 days ago

    The development of CCLA’s mental health benchmark: Sponsored article: Amy Browne examines the importance of investing in mental health in the workplace. We are living through a public health emergency in more ways than one. Physical health[...] dlvr.it/RqQ2Jx pic.twitter.com/o6yRSCX3oF

    Room151 4 days ago

    Brexit: What the EU trade deal means for the UK economy: Sponsored article: Hetal Mehta looks at the impact of Brexit on economic prospects. Four and a half years after voting to leave the EU, on Christmas Eve the UK finally[...] dlvr.it/RqLBDt pic.twitter.com/No62srfE8h

    Room151 4 days ago

    Cash dethroned: The quest for liquid yield: Sponsored article: Peter Hunt and George Carne ask how treasury departments can balance the need for yield and liquidity. The massive stimulus and waves of liquidity provided by central banks[...] dlvr.it/RqLBDj pic.twitter.com/05g6Zhu1kU

    Room151 4 days ago

    Richard Harbord: Delayed “capital determinations” make section 25 opinions a new crunch point: The severe pressure on local government budgets now means section 151 officers confront a tricky call on  whether they can make a judgement on the robustness… dlvr.it/RqLBDV pic.twitter.com/vTAbDKFzkI

    Room151 4 weeks ago

    PWLB Consultation: Analysis straight from Dickens: Helen Radall and Paul McDermott present a legal examination of the new PWLB borrowing rules as Charles Dickens might have imagined it. Free and easy PWLB (“Marley” to his friends)[...] dlvr.it/RnmwLq pic.twitter.com/yFxcPrQqEG

    Room151 4 weeks ago

    Room151’s top stories from a momentous year: 2020 was the year in which local government grappled with Covid-19, funding strains, controversy over borrowing rules and the threat of financial collapse. It has been an exhausting and historic[...] dlvr.it/RnlpZg pic.twitter.com/g3myNyox6J

    Room151 4 weeks ago

    Tracy Bingham: 2020, a year best forgotten but also one of learning: Many will rush to erase 2020 from their memories but, writes Tracy Bingham, there were also many lessons about finance teams, strategic planning and leadership. 2020: A year we’d… dlvr.it/RnlpY2 pic.twitter.com/m7G1krrtCu

    Room151 1 month ago

    Settlement must address ‘precarious’ local government finances: Dan Bates crosses his fingers for “no nasty surprises” in this week’s funding settlement but argues the “bigger prize” is post-Covid financial certainty. Thursday (17 December) should be the… dlvr.it/Rnj9dG pic.twitter.com/KLKjjuBqJE

    Room151 1 month ago

    PWLB consultation: Big change on the way but there are ‘grey areas’ and opportunities: The consultation on PWLB borrowing has concluded creating a new landscape for funding property acquisition. Our experts look at the implications. Tracie Langley The… dlvr.it/RndRvJ pic.twitter.com/KEqXEBmEfq

    Room151 1 month ago

    2021: Better income outcomes?: Sponsored article: Investors should be mindful of structural challenges posed to income generation as a result of rapid thematic change. Jon Bell looks at the prospects for the coming year.[...] dlvr.it/RndRsw pic.twitter.com/TxVk8aXkMq

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Essex awards £150m infrastructure mandate
  • Next story News round-up: Brexit role for councils, LGPS monitoring contract, road repairs and council tax rises

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies from this website.OK