LGA Corporate Peer Challenge: Tunbridge Wells Borough Council

The peer challenge team reviewed a range of evidence and interviewed staff, members, and partners. Overall, the peer challenge team found that the council performs well, has solid finances and is effective.

The peer challenge team interviewed a range of local stakeholders and key partners, and it was clear during these interviews that Tunbridge Wells BC wider role in Kent is very positive and effective.

The council are seen as a good and valued partner by these key stakeholders from across a variety of sectors including, the public sector, voluntary sector, and local businesses.

The council has had a good record of delivery since the last corporate peer challenge in 2019. For example, the council has delivered the new Amelia Scott centre which brings together a range of services and facilities for local residents in one central location.

The peer challenge team found that the chief executive is thorough and dedicated to his role. He is very hands on and involved, in several interviews partners and staff repeatedly stated that the chief executive is also accessible and open.

The council has a new Leader since the change of administration at the local elections in May 2022. The new leader is clearly respected and a visible Leader who has worked hard to establish himself in this new role.

There are opportunities for the council to strengthen the relationship between the senior officer leadership and political leadership, focussing on key priorities, long-term vision, and strategy.

The peer challenge team heard in several interviews and were given examples of the ways in which the Borough Partnership is working positively together, despite some political challenges such as the local plan.

The financial situation at Kent County Council is a risk for the borough council, despite the strong financial position at Tunbridge Wells. The council is very aware of this and taking steps to assess the risk and ways they can mitigate the impact on the borough council.

The peer challenge team reviewed Equalities, Diversity, and Inclusion (EDI) at Tunbridge Wells Borough Council. The peer challenge team are of the view that EDI at the council needs to be developed further both internally and externally.

The council has moved quickly and seized opportunities, for example the purchase of Royal Victoria Place (RVP) lease. There are some challenges for the council to address in the town centre, such as high percentage of retail vs other types of offer, in the town centre. There are also further opportunities for place making, which the council are aware of and working on.

There is a high level of awareness amongst officers and members of the financial pressures at the council. However, the peer challenge team believes that this should be balanced against the need to progress the council’s key priorities. There is more work to be done on key priorities like climate change, and to align resources and capacity to deliver the key priorities.

The peer challenge team reviewed budget documentation and noted that the council is one of a few in the country that has no debt. The council is also one of only a small number to have signed-off the most recent accounts, which illustrates the effectiveness of the finance team. The peer challenge team found that there is a good internal audit function. The peer challenge team are of the view that there could be more transparency in budget reports to assist members’ and residents’ understanding.

The council has a number of shared services arrangements which seem very complex, the peer challenge team believes that the governance for these arrangements could be clearer and simplified. For example, Swale Council changed their working hours, and this had an impact on the shared service but there did not appear to be collective oversight of this change.

The council could explore how the shared services can help deliver the council’s changing strategic priorities and consider the best way of utilising the shared services to meet future challenges.

The peer challenge team held interviews to consider governance and scrutiny at the council. In the interviews, there was some confusion on the roles of Cabinet Advisory groups vs Overview and Scrutiny. Forthcoming governance changes are an opportunity to provide more training and support to members on this topic.

The peer challenge team reviewed data provided by the council and note the relatively high vacancy rates amongst staff. This is putting staff under strain, reducing capacity, and increasing the use of locums and agency staff. Can more be done by the council to tackle this issue?

There are a number of observations and suggestions within the main section of the report. The following are the peer team’s key recommendations to the council:

Recommendation 1

Strengthen working relationship and shared understanding between senior officers and members (joint away day, off-site, on long-term strategic challenges with external facilitation).

Recommendation 2

Streamline meetings for senior team and Cabinet to make the most effective use of time.

Recommendation 3

Update and communicate HR policies (e.g., hybrid working, disciplinary/grievances/EDI, Health, and policy for frontline staff etc). Training and support for managers on issues like reasonable adjustments, mental health, and well-being. Consider introducing the mental health first aider scheme.

Recommendation 4

Consider re-baselining the budget taking into account repeated underspends and areas for growth. Align resources to key services, priorities, and long-term strategy.

Recommendation 5

Climate change is a key priority, but to meet stretching targets it needs to be at the core of what you do. Embed it through the organisation and ensure there are sufficient resources, staff, and capacity.

Recommendation 6

Consider ways to strengthen EDI, updating policies, using EQIA more effectively. Change approaches to consultation and decision-making to ensure EDI is considered at an early stage.

Recommendation 7

Strengthen risk management, with updated processes and systems, and taking a more strategic long-term view.

Recommendation 8

Training for members post May all out elections, clarify role of Cabinet Advisory vs working groups vs OS with forthcoming governance changes.

Recommendation 9

Consider ways to improve the governance of shared services arrangements to increase transparency and member oversight. Consider creating a shared long-term strategy.

Recommendation 10

Encourage Cabinet Members to lead on the presentation of items at Cabinet to increase visible ownership of key decisions.

The peer team

Peer challenges are delivered by experienced elected member and officer peers. The make-up of the peer team reflected the focus of the peer challenge and peers were selected on the basis of their relevant expertise. The peers were:

• Giles Hughes, Chief Executive, West Oxfordshire District Council – Lead Peer/Chief Executive peer
• Kirstin Donaldson, Service Manager – Acquisitions and Development, South Cambridgeshire District Council – Officer peer
• Cllr Sue Baxter, Deputy Leader and Cabinet Member for Economic Development and Regeneration, Bromsgrove District Council – Member peer
• Cllr Richard Henry, Leader, Stevenage Borough Council – Member peer
• Cllr Tony Dale, Cabinet Member for the Economy and Council Transformation, Cotswolds District Council – Member peer
• Angela Kawa - Peer Challenge Manager, LGA officer peer

Scope and focus

The peer team considered the following five themes which form the core components of all Corporate Peer Challenges. These areas are critical to councils’ performance and improvement.

1. Local priorities and outcomes - Are the council’s priorities clear and informed by the local context? Is the council delivering effectively on its priorities?
2. Organisational and place leadership - Does the council provide effective local leadership? Are there good relationships with partner organisations and local communities?
3. Governance and culture - Are there clear and robust governance arrangements? Is there a culture of challenge and scrutiny?
4. Financial planning and management - Does the council have a grip on its current financial position? Does the council have a strategy and a plan to address its financial challenges?
5. Capacity for improvement - Is the organisation able to support delivery of local priorities? Does the council have the capacity to improve?

The peer challenge process

Peer challenges are improvement focused; it is important to stress that this was not an inspection. The process is not designed to provide an in-depth or technical assessment of plans and proposals. The peer team used their experience and knowledge of local government to reflect on the information presented to them by people they met, things they saw and material that they read.

The peer team prepared by reviewing a range of documents and information in order to ensure they were familiar with the council and the challenges it is facing. The team then spent three days onsite at Tunbridge Wells Borough Council, during which they:

• Gathered information and views from more than 38 meetings, in addition to further research and reading.
• Spoke to more than 65 people including a range of council staff together with members and external stakeholders.

This report provides a summary of the peer team’s findings. In presenting feedback, they have done so as fellow local government officers and members.

The peer challenge team considered data provided by the council and benchmarking information and found that the council has a good record on delivery and service provision for residents.

The team was provided with a case study on the work the council has done to support Ukrainians, and this was discussed in several interviews. The peer challenge team found that the council has done excellent work on supporting people from Ukraine and leveraging community capital.

In interviews it was repeatedly stated by key partners that the chief executive’s role on the Kent chief executives group, which he chairs, is influential and impactful. This allows the council to have more influence and an opportunity to shape the agenda.

The peer challenge team were very impressed by Business Improvement District (BID) team and their relationship with the council.

The council works well with key partners such as police, Kent County Council, other district councils and parish Councils. There was consistent feedback about the positive approach and strong working relationships with key partners. It was also clear from interviews that the community safety partnership is very successful.

The peer challenge team reviewed priorities and the delivery against those priorities, the council needs to reflect on the proliferation of priorities, and tasks currently in discussion. There is an opportunity with the new corporate plan to focus on key priorities and align resources (personnel/capacity and funding) accordingly.

As noted in the executive summary the council moved quickly to seize the opportunity of the RVP lease purchase. The council now needs to develop and communicate the plan for the shopping centre moving forward. How will the council use the purchase for place making in order to strengthen the town centre offer as a whole?

The peer challenge team reviewed EDI at the council. There have been some positive steps taken but this is an area for development for the council. The council should ask some key questions: where does EDI feature in terms of service planning and delivery; and is it being considered early enough in the process so changes can be made?

The council should consider whether capacity and resourcing issues are creating barriers to delivery of key member priorities, for example climate change? The carbon neutral pledge is a good starting point, but the peer challenge team are of the view that more needs to be done to embed the action plan across services.

The council has a clear focus on ensuring the financial sustainability of the organisation. With the change of administration there has been a change in priorities and there is a wish to focus more on social value as well as costs.

The peer challenge team reviewed data, statistics and plans relating to housing and planning. The peer challenge team noted the council are close to a five-year housing supply but falling slightly short. The new local plan is progressing, and this will help address the housing supply issues.

In Tunbridge Wells, social housing is largely provided by local housing associations. The peer challenge team urge the council to consider ways to develop more formal relationships and reporting structures (formal, minuted meetings etc) with the housing associations (e.g., LAHF). The council could also consider if the disabled facilities grant can be allocated to Housing Associations to manage (other areas are already doing this) given the underspends in the grant.

The peer challenge team heard in several interviews that the member champions are seen as positive by backbenchers. There is a positive relationship between cabinet and the champions.

The peer challenge team found during interviews that there are sometimes frustrations for cabinet members, around barriers to progress such as capacity and resources. The council should consider ways to align resources so that key services and requirements are being met whilst shifting available resources to meet the top priorities.

The change to a new administration has brought some challenges for the officers in adjusting to new priorities and ways of working with the new Borough Partnership. How is the officer community responding to the cabinet change? The peer challenge team are of the view that more can be done to support officers with the change and the council may wish to consider some training for staff in this area.

As stated earlier in this report the council is a good and respected partner. The peer challenge team found that the council works well with other organisations including other public sector partners, local businesses, and the voluntary sector.

The new Leader of the council has made a real effort to engage with every service at all levels. He has taken time to go back to the floor, talking to staff at every level and getting an understanding of how the organisation works.

The council has a stable leadership with long-standing senior management. The peer challenge team did note that there is a tendency to be top-down within the organisation’s culture. The council may wish to consider ways to change this and take a broader approach and involving staff in a more collaborative way. There is talent at the middle manager tier which could be empowered to do more, with more responsibility and ownership of delivery.

The peer challenge team found that there is clear enthusiasm for Tunbridge Wells as a Borough at all levels of the organisation, from officers and members alike. The staff and the members are proud of Tunbridge Wells Borough and passionate about the places in the borough.

The peer challenge team reviewed decision making and noted that there were a number of in-year budget decisions, for example recruitment. The peer challenge team were not clear on the members oversight of these in-year budget decisions. This may be an area for the council to consider going forward to ensure that members have the appropriate level of oversight on these decisions.

The peer challenge team were taken on a tour of the town and reviewed documentation about the local place and the council’s plans for Tunbridge Wells. The peer challenge noted that there is lots of retail in the town and that a plan for the town is being developed with partners and businesses.

Since the elections and change of administration, the new cabinet have developed their skills and knowledge, they are growing into their roles as time goes on. There may be some opportunities for further training and support for cabinet Members.

The chief executive is highly valued in partnership working. He is clearly a respected partner and has developed a strong relationship with key partners and local stakeholders who feel he is knowledgeable and approachable. It will be important to remain open to consider new ways of working together and new projects.

The peer challenge team noted that many councils in the region are struggling to recruit including Tunbridge Wells Borough Council. The council should address issues with recruitment and review the automatic appointment of staff at bottom of the band. The council could also consider performance increases, benchmark of salaries, and flexible working policies to improve recruitment and retention of staff.

The peer challenge team reviewed organisational learning and succession planning. The peer challenge team found that developing the council’s own staff is very important to the organisation. The council has a track record of growing their own staff. However, the peer challenge noted that are relatively few opportunities to move between services and staff were not clear on what opportunities existed to move between services.

The peer challenge heard in interviews that the recruitment and retention issues are creating additional capacity issues and placing some key officers under pressure.

The council has lots of long-standing staff combined with a relatively high turnover rate of approximately 20 per cent. The council should consider ways to improve retention.

The peer challenge team reviewed the People Strategy and believes this is a good start. The council needs to give further consideration to succession planning and resilience as there is a cohort of staff who are nearing retirement. The council should develop a plan to address this point.

The peer challenge team heard consistently across a number of interviews that Democratic Services are great, responsive, and listened to feedback on member induction. The team took onboard feedback from member and made improvements.

The member briefings that are held on a regular basis are seen as very positive by councillors and are appreciated.

The peer challenge team reviewed the shared service arrangements at the council which are complex. The peer challenge team are of the view that the structure and governance could be improved and streamlined. This would be more efficient and would also provide members with greater clarity and oversight, the peer challenge appreciates this would need the support of the other councils involved in the various shared service arrangements. The council could consider a shared strategy on shared services to assist with this and other issues where changes may be needed.

The peer challenge team noted that there are many new councillors at the organisation who are still learning about local government. It was clear in interviews that members feel they are getting support from officers and that officers are responsive to councillors including backbenchers.

The relationship between the chief executive and the new Leader is developing following the new administration forming. They are finding and developing ways to work together to ensure the key priorities are delivered, combining the energy, enthusiasm, network, and commitment of the chief executive with the vision, community, and inclusiveness of the Leader.

The peer challenge team looked at the support offered to staff. In interviews and focus groups, it was clear that the middle manager tier really cares about their staff and want to support them. However, the team found that the approach to staff support depends on individual managers. The council should consider ways in which the support can be made more consistent, for example, by sharing good practice across the organisation.

Team days in the office are viewed positively and are seen as being helpful by staff.

The peer challenge team reviewed HR policies and procedures. The team found that some key HR policies need to be updated, for example on hybrid working. The peer challenge team were also concerned to hear that there were issues for some staff in getting reasonable adjustments, and that in some cases simple adjustments took months to be implemented.

The peer challenge team considered EDI and the council’s documentation and polices in this area. The peer challenge team are of the view that this area needs to be further developed internally, and in terms of service delivery. The peer challenge team found that there were not great levels of awareness of EDI and the Public Sector Equality Duty generally in the organisation. Although the peer challenge team notes some positive developments in the work that HR has begun on new policies and plans and in the use of EQIAs (Equalities Impact Assessments). EDI should be considered at an earlier stage and be more integral, for example with EDI implications and impacts considered early in the formation of new policies and processes.

The peer challenge team noted that the council has a good relationship with the trade union, and that this relationship is constructive.

The peer challenge team are of the view that more work needs to be done on addressing mental health, stress, and anxiety in the workplace. The council may wish to consider introducing mental health first aiders and other options to address this point.

There are some opportunities to improve risk management processes and systems building on the good work being done in this area. The council has good audit processes. As noted in the executive summary the most recent accounts have been signed-off. The peer challenge team noted that there is appropriate governance and member oversight in this area.

The peer challenge team reviewed the key financial documents, budget reports and audit reports. The peer team noted that the council has historically had low council tax rises and has a low council tax base. This is due to historically council tax rate (and a subsequent percentage-based capping regime), council tax receipts are £2-3m lower than its West Kent neighbours. The council has achieved a balanced budget.

Tunbridge Wells Borough Council has no debt or external borrowing. The peer challenge team reviewed both the revenue and capital reserves and found that there are good levels of reserves.

As noted elsewhere in this report the accounts have been signed-off, Tunbridge Wells Borough Council is one of only a handful of councils to have achieved this for the latest set of accounts.

The peer challenge team heard consistent feedback about the strong internal audit function and saw reports to evidence that this internal audit function is working well.

The peer challenge team were impressed by the Amelia Scott but noted that the scheme’s overall budget changed significantly over time (£12m in 2013 vs £21m final spend in 2022), it was noted that there were significant changes to the scheme and cost pressures from increased building costs during this period. The peer challenge team noted that the council have produced a closedown report for the project with some learnings. The peer challenge team believe that there may be some further opportunities for learning and improvements in light of this overspend, in terms of procurement and contract management.

The peer challenge team noted that there are significant contracts up for renewal (waste and leisure). There are risks around the costs of these services when they are reprocured as a result of cost pressures in these sectors. However, the new contracts will present opportunities to consider changes to the service specifications, and what the council wants delivered and how, as well as risks (such as increased costs).

The council has a strategic risk register in place. This captures risks for the waste contract, leisure, RVP etc. The peer challenge team believes there are opportunities to improve the processes and systems for risk management to make this more efficient (for example the software used).

The peer challenge team heard across interviews and focus groups that the council are facing a financial challenge. There was clearly widespread awareness of the financial challenges, namely the £6.7m gap in the Medium-Term Financial Strategy.

The council has clearly identified the budget pressure in future years, and initial progress has been made through a savings plan. The council now needs to develop a clearer long-term strategy to tackle this gap whilst achieving key priorities and continuing to deliver key services.

The peer challenge team noted that some difficult decisions have already taken by the administration (partnership), for example to make savings on car parks.

The peer challenge team noted that the asset management plan is in place. However, given the purchase of the RVP lease and the change of administration and emerging corporate plans, the peer challenge team believe that the asset management plan may need refreshing in line with new strategic priorities and changing costs e.g., construction and climate change pressures.

The peer challenge was concerned to note that virtually all services at the council are carrying vacancies, including in priority areas. This is creating a mix of significant underspends in some areas and overspends in others, where locums are used. The council should consider either working to fill the vacancies or reviewing whether the roles are still required and re-baselining the budget.

The peer challenge team are of the view, that going forward there is a need to balance the council’s approach, placing significantly less emphasis on finances and including more emphasis on social value, in line with the new corporate priorities (whilst maintaining a prudent financial approach).

As stated above the council has a good record on financial management with a relatively stable financial base. The council also has stable leadership and the political leadership in the form of the new administration are working well together. The council therefore has a strong base to work from. As someone said in a focus group the council now needs “to focus more on understanding the value of things not just the cost”.

As noted elsewhere in this report the number of vacancies and recruitment challenges for the council are a concern and could impede the capacity for change at the organisation. The council should consider ways to address this such as looking at recruiting on different pay points not just at the bottom of the scale.

Capacity is generally an issue for the organisation and going forward, could impact on delivery. The council is currently at 85 per cent in terms of the number of full-time equivalents against the establishment (number of post/roles). In interviews it was clear that some partners are unaware of capacity issues and think that budget problems are causing difficulties.

The peer challenge team noted that there is perceived to be a “Tunbridge Wells Way” (internal). While to some, this is seen as a positive and pragmatic approach, others feel that it can be resistant to change. The peer challenge team are of the view that there is an opportunity to develop a new culture, with more focus on collaborative working, and with an openness to new approaches.

The peer challenge team were impressed with the new starters and noted that they are positive, enthusiastic, and expect to progress.

The council are aware of the need for more succession planning for senior management. The peer challenge team noted that amongst the middle managers, there is some really good talent with potential to progress. The peer challenge team believes this tier could potentially be empowered to do more, thereby giving this tier more experience with succession planning in mind.

It is recognised that senior political and managerial leadership will want to consider, discuss, and reflect on these findings. 

Both the peer team and LGA are keen to build on the relationships formed through the peer challenge. The CPC process includes a six-month check-in session, which provides space for the council’s senior leadership to update peers on its progress against the action plan and discuss next steps.

In the meantime, William Brooks, Principal Adviser for the South East, is the main contact between your authority and the Local Government Association. He is available to discuss any further support the council requires. [email protected].