Council no longer 'in a bad position at all' after financial difficulties, leader says

Peterborough City Council (PCC) is not “in a bad position at all”, its leader has said, after previously having run into financial difficulties.

Cllr Wayne Fitzgerald (Conservatives, West), told his cabinet that it’s a “remarkable achievement” that the council ended the 2022–23 financial year with a £600,000 underspend and cautiously suggested it may now be in a strong financial position.

“If I was being bold, I might say we’re there, but I don’t want to tempt fate,” he said. “Despite all the naysayers and critics of the council within the opposition at times, it is not the case that this council is in a bad position at all.”

PCC requested exceptional financial support from the Government in 2020–21 and 2021-22 to help balance its budget as it faced what the Department for Levelling Up, Housing and Communities (DLUHC) called “significant and urgent” financial challenges.

In 2021, it was given recommendations from DLUHC and the Chartered Institute of Public Finance and Accountancy (CIPFA) on how to improve its position, such as by identifying council-owned buildings that could be sold off and reviewing how its housing, planning and development services are run.

After that, the council was also issued reports every six months by an independent panel, appointed to monitor the council’s own improvement plan, until the end of last year.

The final report suggested that it had made “significant progress” towards financial sustainability.

PCC councillors have, since then, voted through a balanced budget – with a five per cent council tax increase – for the current financial year.

But “a number of budgetary risks still remain”, the council says, such as rising inflation and increased demand for some of its services.

At the cabinet meeting, Cllr Fitzgerald also acknowledged the political turbulence the council has faced in recent months, announcing the appointments of Cllr David Over (Conservatives, Barnack) and Cllr Bryan Tyler (Conservatives, Barnack) to cabinet advisor positions after former cabinet member Cllr John Howard (Conservatives, Hargate and Hempsted) resigned from the party earlier this month.

He is one of seven councillors who have quit the Conservative group since May’s local elections.

As well as the update on the council’s finances, Cllr Fitzgerald and his cabinet approved awarding a contract, worth almost £1m, to Ove Arup Ltd to draw up design options and a detailed business plan for Peterborough’s £64m Station Quarter regeneration.

Also approved was the council’s annual climate action plan, which this year includes drawing up a road map to net zero emissions, and approving an extra £1.3m investment (in shares) in Peterborough’s new university.

Finally, the cabinet approved plans for private rental properties in parts of Peterborough to be checked more often as part of an effort to improve housing and crack down on criminal landlords.

This will also need approval from the Government, however, before it can go ahead.