Code of Practice on Good Governance for Local Authority Statutory Officers Released

Recent learnings from public interest reports, and best value reviews on failing councils highlights the importance of good governance in local authorities. And yet there was a gap - CIPFA, LLG and SOLACE recognised that legislation, policy and guidance underpinning local government is largely quiet with respect to governance, save for defining the powers of statutory officers when things go wrong.

So how could we ensure good governance in the absence of clear guidance? The three organisations have collaborated to produce the Code of Practice for Good Governance which provides advice and sets expectations for local government’s roles of Head of Paid Service, Chief Finance Officer, and Monitoring Officer. It paints a picture of governance done well, with clear and practical guidance on structure, policy and process around well evidenced and ethical decision making.

The aim of the Code is to enable the three most senior statutory officers to effectively work together within the ‘Golden Triangle’ to best advise their authority, implement its decisions, and help achieve good outcomes.  

Whilst we should recognise the many other officers holding statutory positions who are important to the overall governance of an authority, the Code recognised the three key positions within the golden triangle for their work across the entirety of the spectrum of authority service provision and obligation. Research backs up that where these three roles fail to work collaboratively within an open working relationship, the risk to the council in terms of failure is high. 

The Code, drafted with assistance from Phil McCourt from Bevan Brittan, sets out the roles and responsibilities that each statutory officer holds. It encourages respect and recognition for these roles – setting out clearly not only their duties, but why these are important. It outlines how the roles feed into the effective operation of the council to enable officers and councillors to understand why the roles are so critically important. 

It provides realistic, practical examples of how the three statutory officers can effectively work together to enable strong and robust governance within their local authorities to prevent against failure. 

The Code is not just about the principles of good governance, but it codifies with practical examples exactly how these key roles should operate between each other and with other officers and councillors at their council. 

Of course, we recognise that there are other factors which influence failure, such as the financial crisis, and the Code will not be able to fix the bigger structural issues, but it does provide a framework with tools to manage effectively with what we have.  

Adopting the Code is a positive step forward for the sector, supporting authorities throughout the good times and the bad to deliver successful councils for the benefit of our communities. 

Deborah Evans, CEO of LLG

You can read the Code of Practice here

Graeme McDonald, Managing Director at SOLACE said of the Code,; “Leadership and governance are the ying and yang of successful councils. This code sets expectations for the three statutory roles, but also their wider relationship with senior management colleagues and the rest of the Council. It outlines the practical application required of individuals, as well as the underlying culture necessary to keep Councils safe.”

CIPFA's Iain Murray, Director of Public Financial Management said ""The Code provides clear and helpful guidance on the leadership responsibilities of the officers in the 'Golden Triangle' to work together on good governance. This is best enabled when the Chief Finance Officer and the Monitoring Officer are full and active members of the authorities Senior Leadership Team"

LLG's Helen Bradley, Monitoring Officer & Governance Lead and Deputy Vice President said,  “The Code is a great foundation to help raise awareness of the roles of these statutory officers, particularly the Monitoring Officer, which is perhaps the least understood of the three. The Code provides a building block for further strengthening relationships to enable good ethical governance and prevent failure”

Philip McCourt, Legal Director at Bevan Brittan LLP said "This is a significant moment in the local government world, with LLG, CIPFA and Solace all coming together for the very first time to create this vital new guidance. The code provides clear information on the expectations for those holding these crucial roles within local authorities, ensuring that they continue to operate to the highest standards”.  

LLG will be interviewing contributors throughout the summer via its Grapevine Podcast and Vlog. In September, members can join Panel members for a bespoke webinar examining the Code and its preliminary impact. We will also continue to plan further impact analysis for future webinars and roundtables. 

If you have any queries on the Code, please contact Helen@llg,org.uk