LGA Corporate Peer Review – Progress Review: Northumberland County Council

The council undertook an LGA Corporate Peer Review (CPR) during 15 – 19 January 2024 and promptly published the full report with an action plan. 

The Progress Review is an integral part of the CPR process.  Taking place approximately ten months after the CPR, 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 CPR recommendations and council’s Red-Amber-Green (RAG) rated CPR action plan. 
• Consider peer’s 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 Northumberland County Council (NCC) for their commitment to sector led improvement, demonstrated by undertaking this Progress Review. This Progress Review was the next step in an ongoing relationship that the council has with LGA sector support.

The Progress Review at Northumberland County Council took place onsite on 2 October 2024.  The Progress Review focussed on each of the recommendations from the CPR, under the following theme headings: 

1. Value for Money 
2. BEST
3. Data and Communities 
4. Supporting elected members 
5. Improvement journey and openness to challenge 

The following members of the original CPR team were involved: 

• Terence Herbert, Chief Executive, Surrey County Council
• Cllr Martin Hill OBE, Leader, Lincolnshire County Council, Conservative 
• Cllr Steve Morphew, Leader of Labour Group, Norfolk County Council, Labour
• Anna Eastgate, Corporate Director of Place, High Peak and Staffordshire Moorlands Councils
• Owen Jenkins, Interim Executive Director, Surrey County Council
• David Powell, Former Deputy Chief Executive and Chief Finance Officer, Powys County Council 
• Francesca Stott and Frances Marshall, Peer Challenge Managers, LGA

The peer team met face-to-face in Northumberland over the course of one day with a cross-section of representatives from the council, including from the following groups:

• Political Leadership 
• Opposition councillors 
• Audit and Scrutiny chairs 
• Senior Management Team 
• Middles managers
• Frontline staff
• Lead officers for areas of work relating to the CPR recommendations

This report provides a summary of the peer team’s reflections on progress made by NCC against each of the CPR’s nine recommendations since January 2024.  It is not an exhaustive record of activity undertaken by NCC since the CPR, or in response to the CPR.  It is a high-level summary of the peer team’s reflections based on NCC provided pre-reading, pre-engagement meetings, fieldwork meetings and the reflections roundtable.  The following summary is shared with NCC from fellow local government officers and councillors and is focused solely on the CPC’s original nine recommendations.   

Northumberland County Council (NCC) has progressed a broad range of activity in response to the recommendations of its Corporate Peer Review (CPR).  Its RAG rated action plan responding to the CPR report’s nine recommendations shows that at the time of the Progress Review, all the actions in the action plan had been completed or were being progressed.  This equates to sixteen actions being ‘on track for delivery or wholly or substantially complete’, eight being ‘started and on track’, with no actions recorded as ‘off target’. 

The peer team commended the breadth of work undertaken by NCC across the CPR recommendations.  This has been delivered whilst continuing business-as-usual activities and delivering key successes such as securing £10 billion investment in Northumberland Energy Park and achieving an ‘Outstanding’ Children’s Services Ofsted judgment.  The peer team in particular praised progress over the past eight months around:

• Establishing greater organisational grip across the council and ongoing efforts to embed this new corporate rhythm through its strategic change programme (BEST), Value for Money (VfM) processes, and Planning Performance and Accountability Framework (PPAF).
• Introducing a well-developed VfM service self-assessment process to enable baselining and identification of improvement opportunities.
• Rolling out the Data Academy to enhance data and analytical skills within the workforce, which the peer team considered exemplar practice. 
• The passion and commitment for NCC from those the peer team spoke with.

There were areas where NCC’s actions in response to the CPR were not as advanced, or the impact of them less clear.  To drive further progress, the peer team would encourage further focus on:

• Translating the changes NCC has brought in across the organisation into quantifiable outcomes and communicating the impact of these changes.
  • Continuing to consolidate NCC’s change and improvement activities - such as the BEST programme, Ways of Working (WOW) and VfM approach – to embedded these throughout all levels of the organisation. 
  • Securing an unqualified VfM assessment from the council’s external auditors to provide assurance and confidence on the improvements made.
  • Continuing to grow a culture where openness and listening to constructive challenge is encouraged and in fostering an environment of trust across elected members.

Theme 1: Value for Money 

VfM: NCC has commenced numerous measures to improve the VfM of its services.  This has included: implementation of VfM assessments for service areas with 44 completed and approximately half moderated, a more rigorous approach to planning and performance management, and a rolling programme of ‘rapid improvement reviews’ of services including Waste, Housing and Highways.  The peer team commended the VfM self-assessment process and intention to embed this as a cycle of continuous improvement.  They also welcomed the VfM workstream being led by a senior leadership team member from outside the finance directorate, reflecting the corporate ownership given to this priority.  The impact of this activity was evident in the emerging clarity and profile of VfM across the council and resulting conversations on how to deliver services differently in some areas, such as Public Health.   

There is inevitably further to go – which NCC recognise - to articulate what VfM means for NCC throughout the organisation, and how VfM outcomes will be measured.  NCC is in the early stages of defining what VfM means for different parts of the council and in setting its corporate rhythm.  As it deepens its bottom up VfM approach, the peer team would encourage NCC to harness staff insights and define VfM in different service areas and then articulate this to staff.  This will help NCC’s BEST and VfM activity to be collectively owned and to evolve in an interconnected and mutually reinforcing manner. 

External Audit: The peer team did not speak to NCC’s external auditors as part of the Progress Review but heard from NCC that it has worked constructively with them to address identified weaknesses.  From conversations with its external auditors, NCC reported being confident of securing an unqualified VfM opinion on its 2023/24 financial accounts and this noted in the minutes of the 28 August Audit Committee.  The position remains that the external auditors have issued an adverse VfM conclusion for 2019/20 and concluded weaknesses exist in the three subsequent financial years.  The financial statements (the other part of their conclusion) for those years judged as unqualified.  The original Corporate Peer Review recognised that the Council has moved, supported by partners, to resolve the governance issues highlighted in the Auditor’s report. It is imperative that NCC continue to address the external auditor’s feedback to secure an unqualified VfM judgement on its next financial accounts.  This is something NCC is clearly focused on.  Achieving an unqualified opinion for 2023/24 will be important to provide transparency, confidence and external assurance on the improvements made and demonstrate the council has addressed historic issues.

Capital Strategy: In February 2024, the council agreed a detailed four-year Capital Strategy as part of a measured approach to enabling longer-term horizon planning for capital investment.  The peer team welcomed NCC’s intentions to adopt a ten-year capital programme - which is considered good practice - to provide this longer purview.  The peer team also reflected positively on NCC’s plans to implement a capped budget for the revenue funding of borrowing for the capital programme. This will ensure the balance between needs and affordability is considered in setting a realistic budget and a sustainable capital programme. The peer team also commend the council for ensuring the capital programme is linked to BEST Use of Resources.

Theme 2: BEST 

 Ownership and empowerment:  NCC has made concerted efforts to embed the Corporate Plan, BEST and Ways of Working (WOW) beyond NCC’s senior team.  In addition to the VfM activity, this included: corporate staff briefings, two senior managers away days, WOW workshops attended by over 500 staff, commencement of three rapid improvement service reviews and a planned Expo to share good practice.  Peers heard examples of cross organisational working to deliver better service outcomes, from peer-to-peer coaching on VfM statements and rapid reviews, to multi-agency working. The peer team commended the overall positive direction of travel, and corporate ownership through cross-cutting senior responsible officer (SRO) leads for different BEST workstreams. 

Good progress has been made to embed BEST across the organisation. With BEST at a relatively early delivery stage, there is inevitably further to go for it to be understood fully by the whole organisation including frontline staff.  NCC recognise this and have plans to do so.  As part of this, it will be important to consider councillor engagement in BEST.  Whilst councillor engagement opportunities are in place through Member briefings, and Scrutiny and Audit Committees meetings, there remains a desire for greater understanding - and scrutiny - of the programme from elected Members outside of the administration.   

Outcomes: BEST has evolved considerably since January 2024, with a significant number of outputs and process changes evident.  Examples include creation of an Adult Social Care predicted demand management dashboard, to an increase in service users following changed leisure provision.  Given the relatively early delivery stage of BEST, quantifiable outcomes delivered through the programme are still developing and will be integral to delivering a financially sustainable council.  At the time of Progress Review, BEST savings target for 2024/25 were on track for delivery.    The peer team emphasised the importance of having a strong focus on delivery and being able to quantify, measure and articulate the outcomes and cultural change from BEST.  They endorsed NCC’s proactive appointment of a benefits realisation officer which will be critical to success in doing so and bring increasing clarity to the level of benefits. It is important that both cashable and non-cashable benefits are accurately captured. 

Build capacity and skills:  NCC has a suite of activity planned around workforce development to grow and retain skills and knowledge through BEST.  This includes plans to develop: a Learning and Development Plan, a People Partnering Model, and a standard approach to Strategic Workforce Planning - all underpinned by a new digital approach.  As NCC establishes these core building blocks, the peer team would encourage NCC to consider how to ensure these are sustainable and to future-proof the approach for the long-term.

Strategic role with partners:  Since the CPR, NCC has had a keen focus on two strategic partnerships in particular. These have been the North East Combined Authority (NECA) which came into being in April 2024, and the County Partnership on tackling socio-economic and health inequalities which has held two meetings. The peer team did not speak with external partners as part of the Progress Review but heard from NCC its focus reflects the critical roles these partnerships have in delivering NCC’s political leadership’s ambitions around place and tackling inequality as articulated in its corporate plan.

Theme 3: Data and Communities   

Data and analytics:  Significant efforts have been made by NCC to enhance and systemise consistent use of data and analytics to drive performance monitoring, horizon scanning and service improvement.  Steps have included: launching a Data and Business Intelligence Strategy, investing in workforce skills through the Data Academy, Data Forum, Community of Practice and Data Leaders Group, refreshing the PPAF, undertaking performance deep dives in key service areas, and developing a ‘Communities First’ model to better leverage community resource to Adult Social Care. 

The early impact of these changes was apparent to the peer team through: 

• A more rigorous approach to planning and performance management.
• Business intelligence and VfM dashboards informing decision making and service planning in parts of the council. 
• Learners and services reporting direct benefits from the first Data Academy cohort.     
• Examples of proactive cross-system working to enable rich insight and data-driven decision making and partnership working.  Noteworthy examples include joint working through the County Partnership around tackling social economic inequalities, with the National Innovation Centre for data around social value, and with the Local Resilience Forum to protect vulnerable communities. 

There is inevitably further to go so that every part of the council is data-led, which NCC recognise.  To do so, the peer team encourages NCC to build on positive progress to date to address variable approaches to utilisation of business intelligence and VfM across services.  They also highlighted the importance of engaging with and supporting councillors to develop the skills to interpret data to empower them as community leaders and in scrutinising performance.  NCC recognises these as important and intended next steps as it continues to progress this complex and evolving continuous improvement priority.

Enabling communities:  There is a clear commitment to adopting a more community enabling and asset-based approach across NCC’s activities. This can be seen in the restructure underway to enable NCC to adopt a ‘Communities First’ approach to service-redesign.  The peer team heard examples of strong community enablement approaches in parts of the organisation, such as the Heart of Blyth project where resident panels awarded and distributed micro-grants into communities. There was also evidence of good use of data – such as through the Place Standards Tool and data analysis layering – driving NCC’s work around tackling inequalities.  NCC should build on these practices to embed this learning and drive a more systematic approach to community enabling approaches across the council.  To deliver upon NCC’s commitment to social value, peers emphasised that it will be important to have a stronger focus on measuring and quantifying social value outcomes.   As previously mentioned, a benefit realisation officer has been recruited specifically to do this. 

Theme 4: Support to elected members  

Openness and trust: NCC has undertaken several steps aimed at fostering greater trust, openness, and transparency.  These have included: regular political group leader meetings, Scrutiny Chair reports to Full Council, cross-party approach to shaping PPAF Key Performance Indicators, and a Section 5 (Section 5 of the Local Government & Housing Act 1989) report from the statutory monitoring officer to provide assurance on compliance with the law regarding a specific issue. In the period since the CPR, there has been a reduction to zero of formal councillor submitted FOIs, and zero councillor-to-councillor, complaints and officer – councillor complaints. 

Whilst recognising this positive direction of travel, the peer team heard differing views from councillors on how successful these steps have been, or the impact they have had everywhere.  This suggests there is further work to be done to foster an environment of openness and trust.  The peer team heard that greater proactive sharing of information and communication from NCC with councillors would assist in fostering this environment, as would more meaningful engagement from councillors from across the political spectrum.

With local elections on the horizon in May 2025, this inevitably impacts on the context in which the council is operating.  It is positive that preparations are being made ahead of the elections to support new councillors in the new electoral term. The peer team would encourage that that is in tandem to a continued concerted effort to foster positive relationships for the remainder of the current electoral term.

Councillor development:  There has been activity in the past 8 months focused on councillor development.  This has included: a new programme of Policy Conferences for 2024-25, Planning Committee and Corporate Parenting training, and development of 2025/26 induction programme for a new intake of councillors.  Whilst recognising these developments, the peer team reflected that there is further to do to demonstrate a systematic and planned councillor development programme for the current municipal year.  They also suggested that support to scrutiny be included in future councillor learning and development activity.

Embedding:  NCC’s upward trajectory on its improvement journey has continued since the Progress Review.  This is a whole organisational achievement and can be seen in examples - detailed throughout this report - of NCC seeking to embed, drive, and monitor the impact of its change activities.  It is also reflected in staff reporting continued improvements in organisational culture and communications over the past year, and seeing NCC as a good place to work.  This can be seen with recent staff survey results showing increases since 2023 of 39 percent in how positively staff feel about work, and 17.7 percent in feeling they can thrive within the Council.  There are inevitably still areas for improvement, with leaders and managers role modelling the Council’s values and behaviours in their interactions one of the lowest scoring indicators.

The passion and commitment of NCC’s political and officer leadership is self-evident and are understandably proud of recent organisational successes.  It will be important that NCC’s successful strategy to embed and consolidate the culture and behavioural change continues and is sustainable regardless of the political cycle, or individuals. 

Celebrating:  NCC has achieved a lot in the months since the CPR. In addition to progress made in relation of the CPR recommendations, significant achievements that NCC are rightly proud of include its ‘Outstanding’ Ofsted judgment for Children’s Services and securing £10 billion investment in Northumberland Energy Park.  NCC has sought to celebrate its achievements through national and regional awards, and by recognising staff achievement through BEST workforce awards. 

Openness to Challenge: External scrutiny has become the norm for NCC.  The peer team heard examples from across all directorates where NCC has actively sought to learn from external expertise and practice from elsewhere.  Recent examples have ranged from commissioning the Institute for Health Equity and National Innovation Centre for Data to support NCC’s tackling inequalities activities, to undertaking an LGA Adult Social Care Peer Challenge.  The peer team also heard that BEST – by creating an environment for staff to share ideas and innovate – reflects this positive cultural change.  The peer team welcomed and encouraged this outward facing approach as an important element of developing a culture of learning and challenge.  At the same time, they suggested NCC consider what the optimum balance is for NCC between utilising external consultancy expertise and capacity, and in developing and retaining a culture of challenge and learning inhouse. 

Whilst seeking external challenge is positive, how an organisation responds to constructive challenge – and hears feedback it may not like - is equally as fundamental in being fully open to and embracing of challenge. To demonstrate NCC is fully embracing challenge and learning from it requires this culture to be embedded throughout the council.  The stated objective to “be open to - and fully embrace learning from – internal and external challenge” will be evident in the future, only if embedded throughout NCC. 

The LGA would like to thank NCC for undertaking an LGA CPR 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. 

Mark Edgell (Principal Adviser) is the main point of contact between the authority and the LGA and his e-mail address is [email protected].