London Council Receives Mixed Review in Peer Assessment
The City of London Corporation has been commended for demonstrating strong leadership and making significant progress in key areas such as climate action, according to a recent corporate peer review. However, the assessment also raised serious concerns regarding the backlog of works across its social housing estates and the health of its finances, particularly in light of the Government's Fair Funding Review and Business Rates Reset.
Comprehensive Review Process
The Local Government Association's (LGA) Corporate Peer Challenge involved an extensive evaluation process, including more than 25 meetings with staff, councillors, and external stakeholders. Over 120 individuals were consulted, with additional research conducted to provide a thorough analysis. These peer reviews are designed to support councils by identifying both successes and areas requiring improvement, focusing on five core themes: financial planning, governance, culture, leadership, and organizational effectiveness.
Areas of Praise and Progress
The report, published on February 16, highlighted the Corporation's strong leadership and initiatives like the 'Destination City' programme, which aims to promote growth across the Square Mile. The council's ambitious £68 million climate plan was also noted as a significant achievement. Additionally, improvements in equity, equality, diversity, and inclusion (EEDI) were acknowledged, with the Corporation previously at risk of non-compliance with certain statutory requirements.
Governance and Transparency Issues
On governance, the report noted that the Corporation has implemented structural changes, reducing the number of forums from approximately 130 to around 80. However, tensions between certain members and officers were identified, and areas for improvement in governance were suggested. The peers encouraged the Corporation to enhance transparency in decision-making, particularly regarding items discussed in closed sessions. This issue had previously been raised by the Local Democracy Reporting Service, which found that nearly 40 percent of meeting items in September and October last year were conducted behind closed doors.
Social Housing and Financial Concerns
The report identified several areas of particular concern, most notably the finances of the Housing Revenue Account (HRA) and the condition of the Corporation's social housing estates. It stated: "There is a story of limited investment over recent decades across social housing in the Square Mile." The Corporation recognizes a significant backlog of capital works needed to bring homes up to standard and comply with recent building safety regulations.
Addressing these pressures presents challenges for investment funding, as the HRA is under real pressure across London. The report warned that these issues could have a destabilizing effect on the local authority's revenue finance position. Additionally, the extensive resources required to renovate the Barbican Centre and the impacts of the Government's Fair Funding Review and Business Rates Reset on the Corporation's finances were highlighted.
Recommendations and Responses
The peer review listed a series of areas for improvement and provided five key recommendations for the Corporation to implement. These include ensuring the delivery of capital works and improvements in responsive repairs for social housing, alleviating pressure on the HRA, and revisiting the effectiveness of the Corporation's decision-making structures.
Deputy Chris Hayward, the Corporation's Policy Chair, responded to the report, stating: "This review confirms the strength of the City Corporation's leadership, our clear ambition, and our deep commitment to the people and communities we serve. I'm proud of the progress we are delivering, particularly in areas such as economic growth, climate action and community engagement, but we are not complacent. The report highlights important challenges, and we will act on them with pace and purpose."
Ian Thomas, City of London Corporation Town Clerk and Chief Executive, added: "I welcome this report and the recognition it gives to the dedication of our staff and the steady progress being made across the organisation. We will use the report's honest and constructive feedback to continue improving how we deliver our services for the benefit of our communities, the capital and the nation."
