Significant weaknesses remain at council but progress made

The value for money commentary from Ernst & Young LLP for 2024/25 was presented to the council’s audit committee on Monday, March 30.

The report set out seven recommendations across the three areas of financial sustainability, governance, and improving economy, efficiency and effectiveness.

This was an improvement on 2023/24 when there were 11 recommendations.

There were no new recommendations, with all seven carried forward from the previous year.

A report responding to the external auditor by council director of finance Hannah Doney said: “Although this is reported in March 2026, the commentary is on arrangements and conditions that existed during 2024/25 and therefore does not reflect progress that has been made during 2025/26.

“Officers anticipate that the value for money commentary for 2025/26 will confirm that further progress has been made during 2025/26 and that significant weaknesses have been addressed, particularly in relation to financial sustainability.”

Ben Lazarus, partner at Ernst & Young LLP, told the committee: “The summary position is a lot of positive commentary in there and hopefully you can see it’s a sort of balanced picture around your overall value for money arrangements.”

He said the two significant weaknesses related to financial sustainability more broadly and the local authority’s housing compliance following a critical inspection in November 2024.

The Regulator of Social Housing found serious failings in the local authority’s service as a landlord, issuing a grade three rating – the second lowest.

These issues were having a “significant impact” on outcomes for tenants.

It is expected progress in both of areas of weakness will be reflected in future reports on the 2025/26 financial year.