Independent review
Completed
Plymouth City Council: External assurance review
External assurance review of Plymouth City Council led by the Chartered Institute of Public Finance and Accountancy (CIPFA) undertaken in August 2024.
Government Response
MHCLG decides to grant Plymouth City Council Exceptional Financial Support, issuing a capitalisation direction under sections 16(2)(b) and 20 of the Local Government Act 2003 approving up to £72m for 2025-26. No statutory Best Value intervention is imposed; the council does not appear on MHCLG's intervention list.
Recommendations
Recommendation 1
The budget report, budget monitoring reports and the Medium Term Financial Strategy (MTFS) should clearly identify financing costs (interest and MRP) as a separate budget item, and that this is closely monitored and reported.
Recommendation 2
Regular monitoring and forecasting of changes in demand and costs combined with financial modelling as part of the MTFF/MTFS.
Recommendation 3
The council ensures it retains focus on taking the decisions necessary to set a balanced budget in 2025-26.
Recommendation 4
The council ensures implementation of the recommendations to strengthen corporate governance of the FoC is given appropriate priority.
Recommendation 5
Consider the establishment of further Shareholder Committees (or Sub-Committees) with a specific remit in relation to a single company or group of companies based on function, size, degree of control and financial risk to the council.
Recommendation 6
Undertake a robust review of the profile of the Capital Programme to identify a realistic forecast outturn for 2024-25.
Recommendation 7
Calculate forecast financing costs as a proportion of net revenue through to 2028-29 to provide greater clarity on the cost of future borrowing to fund the Capital Programme and inform decisions on the scale, profile and funding of the Capital Programme.
No recommendations with this response.