Agenda item

This report sets out the findings following a Finance Peer Challenge conducted of the Council in April 2025.

James Newman (Assistant Director – Finance and Deputy Section 151 Officer) introduced the report which set out the findings of the Finance Peer Challenge conducted in April 2025. He then gave a presentation on the feedback from the Peer Challenge team. He noted the Peer Challenge had been carried out by a team of highly experienced elected members and senior officers from other authorities. The review covered the following elements: financial leadership, financial strategy, planning and forecasting, decision-making, financial outcomes, and partnership and innovation.

The Peer Challenge found that the Council:

• had highly visible and effective political and officer leadership;
• was ambitious and financially well-run, that the organisation’s financial track-record had enabled investment in clear political priorities;
• had a strong track-record in commissioning and contract managing external services;
• demonstrated leadership and effective working with public and private sector partners, including on economic growth, and had important lessons for the wider sector; and
• contained some differing perceptions of its transformation approach and activity, which could be better articulated across the organisation.

Councillor Rowan Ree (Cabinet Member for Finance and Reform) addressed the Board and noted that the Council valued the opportunity to hear from the experts in the peer review team. He said the Council was open to challenge and fresh perspectives. He noted that news about local government finances was often negative and he hoped that this review helped reassure residents that H&F’s finances were well managed. He thanked everyone who was involved in the review process for their time and hard work.

Councillor Rory Vaughan congratulated members and officers on the outcome of the peer review. He said the positive feedback from experts in the field was very encouraging. He then asked the following questions:

• How was the action plan put together?
• How does this fit into the Council’s transformation agenda?
• How does this feed into the budget process for next year?

James Newman, noted that the action plan was available in the pack. Regarding the transformation agenda, he said officers were looking at how to incorporate this into existing structures and create capacity within existing functions. The Chair noted that a report on the Council’s transformation work would be coming to a future meeting.

Councillor Rory Vaughan asked that consideration be given to general finance training for scrutiny members ahead of the budget scrutiny in the Autumn to help them understand the process. James Newman said officers had looked at arranging audit training through CIPFA and noted the LGA also had good resources for members.

Councillor Stala Antoniades asked if officers had looked at other boroughs regarding transformation and what the key lessons were. James Newman said officers had looked at other councils’ transformation journeys. They had recently participated in a transformation workshop with Ealing and Greenwich where they discussed how they set up teams, central functions vs devolved functions, culture change, and how to build capacity to deliver change.

Matthew Sales said the Council had a long record of transformation and highlighted the Resident Engagement and Access Programme (REAP) and the housing improvement programme. Officers working on those programmes engaged with other councils to see what worked and how to apply those lessons locally.

The Chair asked for details on the elements of the Peer Challenge related to commissioned services and contract management. James Newman said officers were not party to all of the conversations the reviewers had undertaken, but the reviewers were given key documents such as the Council’s sourcing strategy and spoke with officers and providers.

Councillor Jose Afonso asked when the tailored training programme for members would be available. Councillor Rowan Ree said there was a rolling training programme, and it had proven useful so far. The Chair agreed, noting she had recently attended a good audit training session. Members suggested scrutiny training should be part of the member induction programme.

ACTION: Members suggested scrutiny training be included in the member induction programme

Councillor Rowan Ree said members and officers would implement the action plan and track progress closely. He said the Council would always look to find the most efficient ways to provide high quality services for residents. This review and the action plan was a step on that journey but not the end.

The Chair thanked members and officers for their contributions. She said the Board would monitor the recommendations in the review and will follow-up with reports on the Council’s transformation programme at future meeting. She highlighted the following recommendations made by the Board:

• To arrange budget training for members ahead of the budget scrutiny meetings.
• To include scrutiny training as part of the Council’s member induction programme.

RESOLVED

1. That the Board noted the overview presentation and final report at Appendices 1 and 2 of the Local Government Association Finance Peer Challenge of H&F.

2. That the Board considered the action plan at Appendix 3 to support the implementation of the recommendations, the delivery of which will be monitored by the Policy and Oversight Board.