11 May 2007
District councils are getting better at financial management but a handful are still lagging behind, according to the Audit Commission.
Use of resources assessments for all 238 district councils in England, published on May 10, showed a notable improvement on last year's results. More than half of districts performed above minimum requirements in 2006, compared with just over one third in 2005. The number of councils not meeting minimum requirements fell by almost two thirds.
Audit Commission chief executive Steve Bundred said: 'These results should spur on the minority of district councils not meeting minimum requirements. It's well known that councils face significant cost pressure and constrained resources in the coming years, so no opportunity to make more of the available funding should be missed.'
Six councils were in the lowest category and thus failed to meet minimum requirements across the assessment's five themes: financial reporting, financial management, financial standing, internal control and value for money.
Northampton Borough Council, one of the six weak performers, said it was already acting on the commission's findings. Interim chief executive John Edwards told Public Finance: 'We now have a new finance director, and we have put into place plans to address the shortfalls. We believe we are already on the road to recovery.'
Sir Simon Milton, chair of the Local Government Association's improvement board, said it was good news but added: 'For the handful of councils that fall below minimum standards there is work to be done.'
Seven councils secured the top rating, including Cambridge, Chichester and Sevenoaks.
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