LGA Corporate Peer Challenge - Progress Review

The LGA Peer Team returned to Peston City Council on 20 September 2024 to undertake a progress review, you can download a copy of the progress review feedback document (PDF, 169 KB) or view the information below. 

Introduction

The council undertook an LGA Corporate Peer Challenge (CPC) during 26 - 28 September 2023 and promptly published the full report with an action plan.

The Progress Review is an integral part of the Corporate Peer Challenge process. Taking place approximately ten months after the CPC, it is designed to provide space for the council's senior leadership to:

• Receive feedback from peers on the early progress made by the council against the CPC recommendations and the council's RAG rated CPC Action Plan.
• Consider peers' reflections on any new opportunities or challenges that may have arisen since the peer team were 'on-site' including any further support needs.
• Discuss any early impact or learning from the progress made to date.

The LGA would like to thank Preston City Council for their commitment to sector led improvement. This Progress Review was the next step in an ongoing, open and close relationship that the council has with LGA sector support.

Summary of the approach

The Progress Review at Preston City Council took place (onsite) on 20 September 2024.

The Progress Review focussed on each of the recommendations from the Corporate Peer Challenge, under the following theme headings (a full breakdown of the recommendations can be seen at Appendix A):

• Theme 1 - Vision, Partnerships and Communications
• Theme 2 - Workforce and Capacity
• Theme 3 - Data and Performance Management
• Theme 4 - Asset and Financial Management

For this Progress Review, the following peers were involved:

• Lead Chief Executive Peer - David Sidaway, Chief Executive, Telford and Wrekin Council
• Labour Peer - Cllr Sir Stephen Houghton, Leader, Barnsley Council
• Conservative Peer - Peter Fleming, Former Leader, Sevenoaks District Council
• S151 Officer Peer - Mark Green, Director of Finance and Business Improvement, Maidstone Borough Council
• LGA Corporate Peer Challenge Manager - Rachel Robinson

The Lead Labour Member peer from the original CPC, Cllr Rebecca Cooper, former Leader of Worthing Borough Council, was unable to take part following her election as an MP. This role was therefore filled by Cllr Sir Stephen Houghton, Leader of Barnsley Council, as shown above. All other participants were members of the original CPC team.

Progress Review - Feedback

The Corporate Peer Challenge report was published by Preston City Council via their website on 21 December 2023, with the accompanying action plan following in February 2024.

In advance of the Progress Review, the council shared a short position statement and RAG rated Action Plan (Red, Amber, Green) to update peers on the progress made to date.

The council provided a self-assessment against each of the 44 actions within the plan, with 19 (43%) identified by the council as green (having made good progress) and 25 (57%) as amber (progress made, but with future actions required). None are rated as red (not being progressed).

In contrast to this, following this progress review, the peer team believe that whilst some initial steps have been taken, overall, there has been a lack of pace and insufficient progress against the recommendations from the original peer challenge.

At the heart of the findings from the CPC was the first recommendation, for the council to refresh its vision and priorities. This was required as a mechanism to clearly show the ambitions of the administration and establish a visible and understood direction for the council to follow - a golden thread that would then run through everything the council does. This work is still only in its very early stages. As the successful implementation of many of the CPC recommendations are dependent upon this being done, progress as a whole has been restricted.

The council's own self-assessment acknowledged that progress against the recommendations has been mixed, attributing this in part to the impact on resources of the significant city centre regeneration programme that is currently underway and for which the council is leading. This reflects what was seen at the original CPC, that whilst the regeneration agenda is driving change, there is an imbalance between the priorities of the council and the capacity and resources available.

In responding to this, peers note that the relatively strong financial position of the council presents opportunities that could include investment in additional corporate capacity, which would in turn free-up some senior officer capacity, enabling greater attention on these strategic issues and away from day-to-day operations.

The council has many opportunities for change, transformation, and the successful delivery of the council's ambitions. They are there for the taking, but they will require purposeful, clear, strong, and collective leadership from the Cabinet and management team to realise them.

In support of this, the peer team question whether the current governance model of the organisation, specifically the size of the Cabinet and split of the portfolios, is too burdensome and restricting organisational agility.

A review that seeks to rationalise the approach, whilst enabling greater accountability, may support a more responsive organisation.

To develop more meaningful traction against these recommendations, it is suggested that clear targets, including a timetable for action, are incorporated within the CPC improvement plan, to support successful delivery against the overarching recommendations. Routine reporting of progress into Overview and Scrutiny and Cabinet would also be beneficial.

This report will now consider each of the recommendations arising from the CPC in more detail (as outlined in Appendix A) and grouped under the following thematic headings.

Theme 1 - Vision, Partnerships and Communications

During the CPC, the peer team recommended that the council develop a refreshed vision and priorities, led by members, informed by engagement with residents, partners, local businesses and staff and shaped by insights from a robust assessment of current and future demand and needs. This was in response to findings by the peer team, that the council's strong ambitions for the city, which are underpinned by community wealth building, had a mixed level of awareness amongst council officers, partners and community organisations.

In addition, there was a need for prioritisation and rationalisation of the volume of plans, which were not clearly aligned and restricting a clear organisational purpose from running through everything the council does.

Since the CPC, the council has taken some initial steps to set out a new vision for the city to 2035. This has included commissioning an external consultant to produce a needs assessment (State of the City Review) to inform the creation of a revised strategic framework that sets out the long-term ambition and objectives for the council. Engagement has been undertaken with members to map priorities for the city over the next 15 years and targeted meetings have taken place with key partners (including for example Preston College, the prison and local businesses via the Preston Partnership) to shape the development of a city strategy.

Work has also commenced to develop/refresh strategies that will underpin the corporate plan with progress at various stages. Examples of which include the Community Wealth Building Strategy and Cyber, Digital and ICT Strategy. In addition, at the beginning of the year, the LGA led three workshops with the Cabinet and Corporate Management Team, which incorporated an opportunity for senior members and officers to reflect on their current strategic outcomes and priorities. Further prioritisation sessions are due to take place later this year.

Whilst the peer team recognise that preliminary steps have been taken, there is a lack of progress and pace in developing and communicating this refreshed Corporate Plan. This is a fundamental building block and as such, this lack of progress is now holding back the work of the council.

The absence of a clear, current vision and accompanying priorities means that there is still no clear golden thread to inform interactions with partners, shape service direction, guide the workforce, or target resources. There is consequently a mismatch between the ambitions of the administration, particularly in relation to community wealth building, and delivery on the ground. Staff are passionate for Preston and are looking for strategic direction; the refresh of the Corporate Plan should be utilised as an opportunity to shift the culture of the organisation, empower the workforce, galvanise action, inspire and enable innovation.

In parallel with the recommendation to refresh the corporate plan, the CPC advised the council to develop a corporately-led Communications, Engagement and Marketing Strategy, which would help to create clearer messaging and provide an opportunity to better articulate the aspirations of the council to staff, members, partners and residents. To help in fostering a collective buy-in to the council's priorities.

Since the CPC, progress against this recommendation has also been limited. An annual review of the existing Communications Strategy has taken place, along with reviews of the supporting strategic communications plans, such as those for the Towns Fund and Preston Regeneration Board.

Targeted work has focused on the creation of a communications plan for the revised Community Wealth Building Strategy, including for example a programme of podcasts to raise awareness of the approach with the community and businesses. In addition, enhanced internal communication approaches have been introduced, such as staff engagement sessions with the Chief Executive and Leader focusing on themes such as community wealth building. This is a positive response to the feedback from peers that staff would benefit from more informal and formal opportunities to connect with colleagues across the council, to help encourage more collective working.

The CPC highlighted that whilst there was much collaboration and partnership work ongoing, there was a need for the council to continue to strengthen its role as a place leader. This included how the council can grow as a convener of partners, including the voluntary, community and faith sector (VCFS).

Peers were pleased to see the progress that has been made in regards to partnership working. Over the last 12 months, the council has taken steps to enhance the partnership infrastructure with the establishment of the Preston Anchor Partnership Board, which incorporates key stakeholders, including the NHS, educational establishments, Preston Co-operative Development Network, business leaders, blue light representatives and members from the VCFS sector.

The first meeting of the partnership took place in May 2024, with an overarching objective to shape the development and delivery of the long-term vision for the city.

The Preston Regeneration Board, newly established at the time of the CPC, has been embedded as a collaboration between the council, Lancashire County Council, the University of Central Lancashire (UCLAN) and Preston Partnership (business networking group), through which 'Preston 35' a regeneration plan for Preston up to 2035 has been developed and launched this year.

In addition, the establishment of the Health and Wellbeing Board has enabled greater bi-lateral relationships, including a better understanding of the challenges facing the city and the ambitions of each agency.

To fully exploit the benefits of partnership working, there is however a need for the council to invest in more officer leadership capacity for working within and across strategic partnerships, relentlessly championing the needs of the city and helping to drive forward the associated projects and developments.

The delivery and impact of initiatives that stem from these collaborations, particularly in the health and wellbeing space, are also limited by a lack of associated operational resources within the council.

Theme 2 - Workforce and Capacity

Through the CPC it was acknowledged that the council is driving forward city centre regeneration on a large scale. Whilst the regeneration agenda is driving change, it was acknowledged that capacity was a challenge and there was a concern that the delivery of some of PCC's regeneration aspirations, alongside frontline council services, was at risk due to an imbalance between the priorities of the council and the capacity and resources available.

The peer team therefore recommended that the council takes steps to ensure that current and future organisational capacity - including staff levels, resources and skills, are suitably aligned for enabling the successful delivery of the vision and priorities for Preston. It was further suggested that the council should seek to become an employer of choice, informed through a staff survey and enabled by a workforce strategy, that seeks to respond effectively to recruitment and retention challenges and meeting the future workforce requirements.

Progress against these recommendations has been limited since the peer challenge.

The peer team were informed that in response to the need to address organisational capacity challenges (which still remain an issue) a review of existing staff levels, resource and skills has commenced, and initial discussions have taken place regarding the creation of a transformation strategy. Recruitment will also begin shortly for a temporary Assistant Director for Transformation, with additional capacity being explored via graduate and apprentice roles.

Early work has begun on the development of a workforce strategy, including the rollout of a staff survey that launched in September 2024. However, the lack of a clear overarching vision and priorities limits the direction that can be given to this work, in terms of what the organisation needs for its future. This is an example of the impact of an absence of the clear golden thread that is required for effective strategic planning and delivery.

Theme 3 - Data and Performance Management

During the CPC it was identified that there was limited evidence of the use of data and performance management to inform an understanding of the needs of communities, support strategic direction and decision-making, or to assist with the management of the business.

The peer team therefore recommended that a whole council strategic approach to the use of data and performance management should be implemented, which actively informs decision making, supports the management of the business and ensures a focus on the delivery of priorities.

The Council is currently in the process of implementing a Council wide strategic approach to performance management which is aligned to the work to develop a new vision and priorities for the council.

This includes a tiered approach:

 - a Place Scorecard has been created that focuses on long-term socioeconomic outcomes to inform decision making at the Anchor Partnership Board and the shape of council priorities.

- a Corporate Dashboard is planned for development. This will assess progress against the corporate plan and core / high-profile metrics (e.g. OFLOG). This dashboard aims to be developed in line with the creation of the new vision, strategic priorities and associated outcomes.

- Service dashboards to monitor relevant information and metrics for individual service areas.

A review of the 'Performance Hub', Preston City Council's bespoke performance management information system, has recently been undertaken to ensure it is fit for purpose. Moving forward it will be used to monitor performance and the progress of performance indicators, key work areas, and corporate projects. Whilst recognising that this is still work in progress, the Peer Challenge team were not convinced that the approach taken, which relies on a bespoke system that is being developed inhouse, provides the necessary assurance about the ultimate delivery of the information required.

A series of task and finish groups are in place to address performance challenges across a range of areas including council tax collection, recycling, agency spend, sickness absence and housing.

A report describing the new approach was shared with Cabinet during their September meeting. Moving forward, the peer team were keen to stress that it is important that members receive quarterly updates in a timely fashion, which include benchmarking data so that the relative position of the council, overall can be examined.

As noted above, a consultant has been commissioned to undertake a 'State of the City' needs assessment to inform the refresh of the corporate plan. Whilst the evidence base that this work provides will be invaluable, the lack of corporate analytical capacity within the organisation limits the ability of the council to continue to build on these insights and enable more informed decision-making.

Theme 4 - Asset and Financial Management

The CPC highlighted that at a time when many councils are facing severe financial difficulties, Preston City Council is in a relatively strong financial position. As at 31 March 2023, the Council held £30 million of earmarked general fund reserves and had just £12 million of outstanding borrowing. Usable reserves amounted to £57 million (238% of Net Revenue Expenditure at £24m). However, it was noted that longer-term financial sustainability would be strengthened by continuing to develop a financial strategy for the organisation that releases efficiencies, delivers savings and increases income.

In addition, the peer team believed that the council would benefit from agreeing and defining their appetite and attitude towards risk financially (in line with the objectives of the CIPFA Prudential Borrowing Code). Peers also stated that it would be important that the approach is owned by all senior members and officers, who need to share collective responsibility for managing the budget.

The peer team heard that since the CPC, attention has been focused on the delivery of major capital projects linked to the regeneration agenda, including for example the £45m Animate cinema and leisure scheme, and £21m Towns Fund.

It has been the view of the council that through these schemes and wider investment in growth and regeneration, a greater level of financial risk has been taken on. However, a recent significant £12m City Deal funding package has been secured which provides a solution for realising an additional £2m from the new homes bonus for this financial year, a further £3.25m for the Animate scheme and £1m towards the Harris Quarter regeneration project. This additional funding now provides a level of reassurance and helps to reduce the level of risk in the medium-term.

The council noted that now that this funding package has been secured, the council can reflect on the next key milestones required and a new conversation on risk and financial strategy can take place.

It is also the intention that the new Assistant Director for Transformation (for which recruitment is due to commence) will provide additional strategic capacity to enable a new focus on the delivery of efficiencies and savings. This will build on recent progress that has been made in this regard in areas such as council tax collection, where investment is being made in the automation of systems to improve efficiency.

During the CPC it was identified that the council does not have a proactive approach to the use of strategic assets and is therefore missing opportunities to make the most efficient and effective use of land and property, including the potential to generate future capital receipts, or maximise the use of the estate by community organisations. It was therefore recommended that the council implement a more formalised asset management strategy to support the transformation agenda, which maximises income and savings and the use of the council's estate for social and environmental benefit.

Peers were informed that resource constraints within the Property team have meant that priority has been given to urgent matters, such as addressing rent arrears, rather than effective management of the council's investment and property portfolios. However, the team is now fully resourced, with an agenda of estate management work and key city centre disposals earmarked.

A basic asset management plan was produced in 2023 and following the implementation of a new cloud-based property management system (that will provide a complete view of property portfolio information) the formulation of a strategic asset management plan will commence in line with the council's vision and priorities.

It is the view of the peer team that the current approach to the management of resources (finance and property) is holding the council back.

The relatively strong financial position of the council presents opportunities for transformation that can be capitalised upon, but these need to be aligned with clear corporate priorities and leadership to galvanise action. In addition, resources are available that could be utilised as 'invest to save' opportunities to provide much needed capacity in the corporate core, enabling for example, greater analytical support, strategic partnership delivery and improved communications.

It remains the case that, in the view of the Peer Challenge team, members lack the information to assess reliably the potential risks and rewards of further investment.

Specialist financial and transformation support is available through the LGA to provide advice not only on the management of risk, but also to assist with providing an insight and understanding of the potential opportunities that could be available to Preston.

Final thoughts and next steps

The LGA would like to thank Preston City Council for undertaking an LGA CPC Progress Review.

We appreciate that senior managerial and political leadership will want to reflect on these findings and suggestions in order to determine how the organisation wishes to take things forward.

Under the umbrella of LGA sector-led improvement, there is an on-going offer of support to councils. The LGA is well placed to provide additional support, advice and guidance on a number of the areas identified for development and improvement and we would be happy to discuss this.

Claire Hogan (Principal Adviser) is the main point of contact between the authority and the Local Government Association (LGA) and their email address is: Claire.Hogan@local.gov.uk.

Appendix A - Preston City Council Corporate Peer Challenge Recommendations

Theme 1 - Vision, Partnerships and Communications

• Develop a refreshed vision and priorities for Preston City Council, led by members, informed by engagement with residents, partners, local businesses and staff and shaped by insights from a robust assessment of current and future demand and needs. This will help promote a clear set of local priorities, a positive place identity and collective ownership by the communities the council serves.
• Continue to strengthen the Council's role as a place leader and convener to support community, voluntary and faith groups and partners to collaborate around shared outcomes through the successful implementation of the newly established place partnerships and development of supportive infrastructure for the community, voluntary and faith sector.
• Develop a corporately-led Communications, Engagement and Marketing Strategy. This will help create clearer messaging and enable collective buy-in by
  • (a) Engaging residents and stakeholders;
  • (b) Increasing feedback into council work and opportunities for co-design and co-production;
  • (c) Promoting the council's priorities and community wealth building aspirations; and
  • (d) Enhancing internal communications.

Theme 2 - Workforce and Capacity

• Take steps to ensure that current and future organisational capacity - including staff levels, resources and skills, are suitably aligned for enabling the successful delivery of the vision and priorities of the Council.
• Become an employer of choice, informed through a staff survey and enabled by a workforce strategy, that seeks to respond effectively to recruitment and retention challenges (including considering undertaking a pay review), meet future workforce requirements and is reflective of PCC's communities.

Theme 3 - Data and Performance Management

• Implement a whole council strategic approach to the use of data and performance management, which actively informs decision making, supports the management of the business and ensures a focus on the delivery of priorities.

Theme 4 - Asset and Financial Management

• Strengthen longer term financial sustainability by:
  • (a) continuing to develop a financial strategy for the organisation that releases efficiencies, delivers savings and increases income and
  • (b) implementing financial reporting that enables Cabinet and the senior management team to take collective responsibility for the council's budget. This should include improving the assessment of financial risks and creating dialogue to collectively understand personal, group and organisational risk appetites.
• Implement a strategic asset management plan to support the transformation agenda, which maximises income and savings and the use of the council's estate for social and environmental benefit.