Financial warning issued at North Northants Council as leader imposes veto on all but essential spending

North Northants Council staff have been issued with a warning about pressures on council finances from the authority’s leader.

Councillors and NNC officers were last night (Wednesday, January 10) given the news that the council needs to ‘take immediate action’ to rein in its spending.

In an email sent to all staff, leader Councillor Jason Smithers said that despite ‘efficiency measures’ being worked on, ‘further robust action’ was now needed ‘immediately’ in order to reduce spending and balance the budget.

Cllr Smithers said two panels of senior staff had been set up to consider every spend over £500 as well as every recruitment decision. In an authority with an annual budget of £371m, this type of spending would normally be decided at departmental level.

The alert was met with concern from council grandees who remember the former Northamptonshire County Council’s financial meltdown which led to the issuing of a S114 notice and ultimately to the dissolution of the authority and all the sovereign boroughs.

Cllr Martin Griffiths (Ind, Irchester) said Cllr Smithers needed to ‘get a grip’ on the authority’s purse-strings.

But Cllr Smithers said today that the move was ‘common practice’ and was the sign of a ‘well-run’ council.

Last night’s alert came just hours after leader Cllr Jason Smithers reassured our reporters in a lengthy interview that the authority was ‘very well capitalised.’

Cllr Smithers’ email said that the authority was ‘well-managed’ but was not immune to national unprecedented funding pressures. He said: “We must take prudent and proactive steps to manage the challenge ahead.

“The cost pressures facing our council have been particularly acute this year for the Children’s Trust and adult social care services.

“These pressures are not unique to North Northamptonshire; they reflect the national picture.

“They do, however, add significant financial pressure on the council and its services, and for this reason, we must take clear steps to manage the situation.”

He said staff would have to draw a halt to all but essential spending to stay within budget.

Overtime, recruitment and agency staff spending must also be immediately reviewed.

Newly-created spending management and staffing approval panels will be in place for at least the next three months.

The first panel will review and control spending of more than £500 and the latter will approve all permanent and agency recruitment.

Cllr Smithers told staff: “It will be important that we work together to innovate, embrace change and become more efficient.

“It is also important that we have a strong mindset of only using public funds when it represents best value for our residents and area.”

Cllr Jim Hakewill (Ind, Rothwell and Mawsley) who sits on the council's Scrutiny Committee said: "I find it quite concerning that Cllr Smithers has been giving an upbeat message to the Northants Telegraph when on the same day all councillors got an email titled ‘Action to help address the council’s budget deficit’.

"I have been to every budget scrutiny meeting held in private and Cllr Smithers has not come to listen to our debates once.

"He was not at the executive meeting when the budget was announced. He constantly belittles past scrutiny and was extraordinarily rude to his county council cabinet predecessors. He now has exactly the same problems as the county council had, but instead of rolling his sleeves up and sorting the problems out he is blaming all and everyone else but himself.

"I feel very sorry for the hard working officers and staff who daily deliver services despite the the lack of political direction they are given from the leader and his executive committee.”

Former Wellingborough Council leader Cllr Martin Griffiths said: “We need to be more honest with the public on the financial challenges especially as council tax is being increased by the maximum permitted by government.

“It is interesting that Cllr Smithers appears to be blaming lack of government funding, and appealing directly to the Secretary of State, in the same way as the former county council leader Heather Smith did back in 2018 when he first became a county councillor.

“Cllr Smithers was hugely critical of the leadership back then and now the chickens have clearly come home to roost.

“Creating two unitary councils was never going to in itself plug the huge financial black hole in both councils finances.

“What is required is innovative ground breaking transformation of services especially in the big spending areas like Adult Social Care and Children’s Services and his out of touch conservative cabinet need to get a grip and concentrate less on vanity projects to garner popularity.”

Last year a similar edict was issued at West Northamptonshire Council

Councillor Smithers told this newspaper: “Introducing measures to tighten spending controls is exactly the sort of thing a well-run, responsible council does and is common practice in the sector.

“We have a very healthy balance of reserves, which helps insulate us from veering towards reaching a very precarious position but rather than dip into them, we’ve made the sensible decision to tighten our belts.

“We are facing unprecedented demand for services and the money available to pay for them is under increasing pressure. Despite this, we have continued to set a balanced budget, provide vital services and identify savings too.

“The challenges we face are becoming increasingly complex. I am fully committed to enhancing the council’s financial management and utilizing innovative solutions to address any challenges that arise.

“We remain focused in delivering efficient, economic and effective services as part of our everyday work.”

Janice Gotts, North Northamptonshire Council’s Executive Director of Finance and Performance and Section 151 officer, said: “This is about robust management and maintaining vigilance at a time when increasing demand and price rises are challenging our budget assumptions.

“This is prudent financial management. It is not unusual in the sector to seek such restraint and it is considered a reasonable step to take at this time.”