In September 2022, the LGA commissioned Human Engine to conduct a desktop study on five councils with experience of finance and governance challenges, which led to either an S114 report or a capitalisation direction with a governance review at the time the research was commissioned.
The first stage of the research was completed in April 2023. Since the LGA commissioned the research, a further four local authorities have issued an S114 report, demonstrating that this is an increasingly important issue.
The aims and objectives for this research were three-fold:
Synthesise the main messages from publicly available reports
Identify factors impacting financial resilience and the reasons for this
Identify common factors that apply to all three councils that published S114 notices and the two councils receiving capitalisation directives.
In order to discuss the research findings and consider actions to support the sector going forward, four roundtable events were held in November and December 2023. The roundtable events were attended by 45 delegates in officer leadership and commissioner roles from councils across England, including the four councils still in existence which were the subjects of the research. The events were facilitated by Human Engine and the LGA; a representative of CIPFA attended as an observer.
A summary of learning arising from the research and roundtable discussions from the sector is available on the LGA website here.