Nottingham City Council leader agrees need for 'overwhelming need for total transparency' over finances

Accounting firm Ernst & Young (EY) was asked to review the Labour-run authority’s books after unlawful spending was uncovered in the council’s Housing Revenue Account in 2021.

Money strictly intended for council housing and tenants had been wrongly and unlawfully transferred to the authority’s general fund over a series of years, and the cost to make amends is estimated at around £51m.

While the council published its own 10-page summary of the review, it said the full report could not be made public because it was of a technical nature and officers needed a ‘safe space’ to consider it.

However a six-month battle between the Local Democracy Reporting Service (LDRS) and the council resulted in the Information Commissioner’s Office (ICO) ruling in favour of a full disclosure of the report following an appeal.

During a full council meeting on January 15, Coun Kevin Clarke (Ind), leader of the Nottingham Independents and Independent Group, asked: “Will the leader of the council express his gratitude to the efforts of the LDRS who have now secured public access to the full version of the much-requested EY report, as I’m sure he’s dying to read it as much as we are?”

Coun David Mellen (Lab), council leader, replied: “I’ve been clear in previous responses in this chamber that the EY report commissioned by our corporate director of finance and resources was to look at the council’s compliance with accounting controls and ring-fenced funding.

“I am told it is a lengthy technical report commissioned by officers, the full report has not been shown to me as yet, nor to any councillor.

“The finance director produced an executive summary of the report which was presented to senior councillors as well to the audit committee.

“The rationale behind this decision not to publish the full report was technically supported by the ICO.

"However, given our financial challenges currently I agree there is an overwhelming need for total transparency for everyone to have access to the information in the original report.

“I’m also of the opinion too much time has been spent discussing whether or not the report should be shared, both in this chamber and other places.

“I’m certain everyone in this chamber shares my commitment to openness and transparency. We face many challenges as a council, and as public servants it is right we answer questions from our citizens, our fellow councillors and the media.

“I’ve never shied away from being honest and upfront, I’ve never ducked an interview or been anything less than open as far as I’m able. I look forward to seeing the report.”

The council says it will fully comply and publish the report within 35 days.

Coun Mellen added: “There is a lot of thanks being suggested to our media colleagues and I’m sure they do an excellent job and getting the truth and reporting it – it is what they are paid to do.

“I’m glad there is an interest in our political meetings here and in other places.”