LGA Corporate Peer Challenge - London Borough of Sutton

Corporate Peer Challenge (CPC) is a highly valued improvement and assurance tool that is delivered by the sector for the sector. It involves a team of senior local government councillors and officers undertaking a comprehensive review of key finance, performance and governance information and then four days at the London Borough of Sutton to provide robust, strategic, and credible challenge and support.

CPC forms a key part of the improvement and assurance framework for local government. It is underpinned by the principles of Sector-led Improvement (SLI) put in place by councils and the Local Government Association (LGA) to support continuous improvement and assurance across the sector. These state that local authorities are: Responsible for their own performance, Accountable locally not nationally and have a collective responsibility for the performance of the sector.

CPC assists councils in meeting part of their Best Value duty, with the UK Government expecting all local authorities to have a CPC at least every five years.

Peers remain at the heart of the peer challenge process and provide a ‘practitioner perspective’ and ‘critical friend’ challenge.

This report outlines the key findings of the peer team and their recommendations. The council will be developing an action plan against these recommendations.

Sutton is a well-performing council with a good record of delivery, supported by an engaged workforce, and a healthy organisational culture with a clear commitment to serving its residents. The council benefits from positive working relationships between the officer and political leadership, a critical factor for success in the best performing councils.

Sutton is navigating a transitional period following the first change in political leadership in 12 years. This shift, along with the appointment of new committee chairs, provides an opportunity to refresh the council’s focus on core priorities and build on its strong foundations.

The council’s Ambitious for Sutton corporate plan sets significant targets for the organisation. The peer team found these priorities to be well-understood among members and officers, with a good degree of buy-in to delivering the vision.

While Sutton’s ambition is commendable, the council faces a pressing challenge to align its aspirations with its constrained resources, both in terms of organisational capacity and finances. This necessitates a clear and deliberate process of prioritisation. Transitioning to a more selective approach will be challenging for a council accustomed to delivering a wide range of high-quality services and driving ambitious regeneration projects. However, this reprioritising can be successfully implemented underpinned by the principles of the council’s medium-term financial strategy (MTFS) and the One Sutton transformation programme.

Sutton has adopted a ‘mixed economy’ of service delivery models including in-house delivery, partnerships, shared services and outsourcing. It is important the council continues to maintain robust oversight for the outsourced services and council companies, ensuring good quality client management and performance monitoring. The peer team would emphasise that while service delivery may be outsourced, the council retains ultimate responsibility and reputational risk.

The London Cancer Hub (LCH) is a landmark scheme for Sutton. During the CPC, there was a strong and consistent view from partners that progress on the LCH campus to date would not have been achieved without the council’s convening powers and influence. Now entering an exciting new phase of development, the LCH – alongside the borough’s high quality educational provision – provides a unique opportunity for Sutton to position itself as a borough of Science, Technology, Engineering and Mathematics (STEM) excellence and to promote Sutton as a destination for inward investment.

Similarly, the Sutton town centre regeneration represents several major projects with the aim of reimagining the town centre. While these regeneration initiatives are a good demonstration of Sutton’s ambition, the council must continue to closely monitor and manage the accumulated risks it is exposed to, particularly around the financial assumptions related to land values, development partner contributions and the viability of housing developments.

The peer team felt the council is well-positioned to develop a coherent and compelling ‘brand Sutton’ offering, elevating Sutton’s profile and capitalising on its unique assets and ambitions. This will require a shift from the council’s historically understated approach to boldly promoting Sutton and celebrating its successes. The council should use the LCH and Sutton town centre regeneration as catalysts for creating a clear and targeted strategy to attract inward investment and drive economic growth.

A fundamental part of developing ‘brand Sutton’ and the resulting campaigns is the foundation of a dedicated communications and engagement strategy. This is something the council does not currently have, and the peer team recommends Sutton develops this.

Partners were generally complimentary about working with the council, with these productive working relationships positively supplemented by strong partnership structures. In particular, the Safer Sutton Partnership and the Sutton Health and Care Alliance were singled out for praise.

While external partners nearly exclusively praised the council, feedback from some Community, Faith and Charity Sector (CFCS) organisations indicated a need for more joined up working and earlier involvement in the whole journey of service change. Sutton should consider refreshing its Compact with the CFCS, prioritising co-production and system-wide working to achieve shared objectives.

Sutton’s decision-making processes are intentionally deliberative and collaborative. However, they can also lead to prolonged timelines, particularly in the progression from policy development to decision-making. Like all councils, Sutton is having to take increasingly difficult decisions, and this requires pace, agility, rigour and bravery. It is important the council assures itself that its governance processes allow it to make decisions in a timely manner so it can realise both its ambition and remain financially sustainable.

Sutton’s well-managed finances and robust internal systems provide a good basis for navigating ongoing challenges. Although demand-led services continue to drive overspends, Sutton is managing these pressures relatively well. The council’s financial resilience is also demonstrated with unqualified accounts up to 2022/23. At the point of the CPC, Sutton were forecasting a near-balanced position for the 2025/26 budget, which is a particularly strong position to be in.

A significant risk area for the council though is its low level of general fund reserves. Sutton has the third lowest level of reserves in London. This leaves the council with limited capacity to absorb unforeseen financial shocks and heightens the need to minimise overspends and deliver savings. Given the risk the council is exposed to, the peer team would support the external auditors’ recommendation to increase general fund reserves, though achieving this will likely require further savings to be identified and implemented. Setting and not requiring budget contingency funds would be an avenue to achieve this, which will require setting budgets correctly and delivering all or most planned savings. The unused contingency budget could then be used to bolster the council’s reserves.

Sutton has a good track record in delivering savings, having achieved over £118m in savings and efficiencies since 2011/12. To balance over the MTFS period, a further £17.1m worth of savings are planned. However, given the cumulative effect of savings being delivered over the last decade, identification and the successful delivery of new savings are becoming increasingly difficult. This reinforces the necessity of the One Sutton transformation programme in redesigning services to improve outcomes but also reduce costs.

Sutton’s Housing Revenue Account (HRA) is under significant strain, with competing priorities driving a projected funding gap of £640.4m over the 30-year HRA Business Plan. To ensure its long-term sustainability, the council should undertake a comprehensive review, incorporating a prioritisation framework to sequence and deprioritise spending where necessary.

In common with other councils, Sutton is facing a range of pressures and challenges, particularly in demand-driven services including Adult Social Care, Children’s Services, temporary accommodation, and services for children and young people with Special Education Needs and Disabilities (SEND). These pressures sparked the development of the council’s four financial sustainability programmes which form a crucial element to the One Sutton transformation programme.

The One Sutton transformation programme is built around the four financial sustainability programmes and supported by key enablers of change: digital innovation, community engagement, partnerships and cultural development. While senior officers can articulate the principles underpinning One Sutton, there appears to be limited understanding beyond this group. The council should take steps to clarify and communicate the broader transformation agenda with members and officers, framing it as a comprehensive programme of organisational change rather than solely a response to financial pressures.

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: ‘Brand Sutton’

Strengthen and promote Sutton’s identity, leveraging its unique assets like the London Cancer Hub. Build a narrative highlighting achievements in life sciences, education and community engagement. Collaborate with schools, local organisations and regional partners to reinforce Sutton’s STEM identity. With the arrival of the new Leader and the next phase of development at the London Cancer Hub, it is an opportune time to develop both the brand and the community engagement.

Recommendation 2: Financial resilience and reserves

Continue to ensure effective corporate oversight and leadership of the council's financial position, including effective reporting and monitoring as well as taking appropriate decisions in a timely manner. Ensure service budgets are proportionately balanced to alleviate the reliance on corporate underspends and where possible seek to bolster reserves.

Recommendation 3: Inward investment strategy

Leverage assets like the London Cancer Hub and Sutton town centre regeneration to create a focused inward investment strategy. Promote Sutton’s unique offering and opportunities to attract businesses and funding in partnership. Design campaigns to attract businesses in priority sectors, exploiting Sutton’s position as a STEM and life sciences leader.

Recommendation 4: Communication and engagement strategy

Develop a dedicated communications and engagement strategy to strengthen connections with residents, businesses and stakeholders. Focus on promoting Sutton’s successes – including initiatives like the London Cancer Hub, regeneration projects, and climate action – using positive, engaging language. Continue to use a variety of platforms, including social media, traditional media, and community forums, to reach a wide audience and ensure inclusivity.​

Recommendation 5: Community and Faith Sector (CFCS) and commissioning

Consider a refresh of the joint Compact with the CFCS and health sectors. This should prioritise co-production, early collaboration and system working to achieve shared goals and a vision for the future. This is particularly important in the area of prevention and supporting vulnerable groups to be active members of their community.

Recommendation 6: Governance and oversight of outsourced services and council companies

Continue to maintain robust oversight for outsourced services and council companies, ensuring good quality clienting and performance monitoring. The council should continue to carry out routine independent reviews of the companies where risk, performance and finances are challenging. The council should look to enhance communications internally with members and officers about outsourced services and the company model.

Recommendation 7: Different operating models in housing

Clarify roles, responsibilities and accountabilities across the diverse housing delivery models. The council should map and review existing housing delivery and operational models, identifying overlaps and inefficiencies.​ Strengthen communications with members and officers about the council’s approach.

Recommendation 8: Residents’ survey

Given the length of time since the last benchmarkable residents’ survey, the council should conduct a borough-wide survey to understand residents’ priorities, satisfaction levels, and feedback to inform council strategies and decision-making.

Recommendation 9: Prioritisation and resource allocation

Develop a clear framework to identify and focus on the most critical priorities while scaling back or ceasing lower-impact activities. Ensure this framework is communicated effectively to staff and stakeholders. This needs to be particularly closely monitored when developing the council’s next corporate plan.

Recommendation 10: Housing Revenue Account

Conduct a comprehensive review of the HRA overseeing the council’s assurance processes to ensure long-term sustainability of the account and the delivery of improved outcomes for tenants and the community. Continue to closely monitor and develop a prioritisation framework for HRA spend. Pursue innovative funding and delivery models to close the significant gap in the 30-year HRA business plan.

Recommendation 11: Development of the digital strategy

Establish a clear roadmap to drive forward the digital programme and further embed data-driven decision-making across the council. Explore artificial intelligence (AI) and advanced technologies to enhance efficiency and service delivery, learning from best practices in other councils.​

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 by the LGA on the basis of their relevant expertise. The peers were:

• Linzi Roberts-Egan, chief executive, London Borough of Waltham Forest
• Cllr Mark Hunter, leader, Stockport Metropolitan Borough Council
• Cllr Dr Gareth Barnard, Conservative group leader, Bracknell Forest Council
• Mike Curtis, executive director of resources (section 151), Royal Borough of Kensington & Chelsea
• Mel Lock, executive director adult services, Health and Housing, Somerset Council
• Dipti Patel, former corporate director – place, London Borough of Harrow
• Harry Parker, LGA peer challenge manager
• Shadow peer: Tamara Kodikara, strategy officer, London Borough of Barnet

Scope and focus

The peer team considered the following five themes which form the core components of all CPCs. 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? Is there an organisational-wide approach to continuous improvement, with frequent monitoring, reporting on and updating of performance and improvement plans?
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? What is the relative financial resilience of the council like?
5. Capacity for improvement - Is the organisation able to bring about the improvements it needs, including delivering on locally identified priorities? Does the council have the capacity to improve?

As part of the five core elements outlined above, every CPC includes a strong focus on financial sustainability, performance, governance and assurance.

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. This included a position statement prepared by the council in advance of the peer team’s time on site. This provided a clear steer to the peer team on the local context at the London Borough of Sutton and what the peer team should focus on. It also included a comprehensive LGA Finance briefing (prepared using public reports from the council’s website) and a LGA performance report outlining benchmarking data for the council across a range of metrics. The latter was produced using the LGA’s local area benchmarking tool called LG Inform.

The peer team then spent four onsite at the London Borough of Sutton, during which they:

• Gathered evidence, information, and views from more than 55 meetings, in addition to further research and reading.
• Spoke to more than 60 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.

Sutton is an outer London borough in the southwest of the city, covering an area of 43 square kilometres. Over the past decade, Sutton’s population has grown at a rate exceeding national trends and is now estimated at 211,123 as of June 2023. This growth has driven significant demographic changes, with 43 per cent of Sutton’s population identifying as from Asian, Black, Mixed, or non-British White backgrounds in 2021, up from 29 per cent in 2011.

While Sutton ranks 226 out of 317 local authorities in the Index of Multiple Deprivation – indicating relatively low levels of overall deprivation – it has areas of acute deprivation. Seven neighbourhoods fall within the most deprived 20 per cent nationally, often located next to some of the least deprived areas, highlighting a stark contrast within the borough.

The council’s corporate plan, Ambitious for Sutton 2022 - 2027, was approved by council in November 2022. This clearly articulates Sutton’s organisational priorities which the peer team found to be well understood among members and officers. The corporate plan sets significant targets for the organisation and is a demonstration of the council’s considerable ambition.

While Sutton’s ambition is commendable, the council faces a pressing challenge in aligning its aspirations with its constrained resources, both in terms of organisational capacity and finances. This necessitates a clear and deliberate process of prioritisation. With Sutton’s limited and reducing capacity, the council must focus on the most high-impact priorities while scaling back or ceasing lower-priority activities. Currently, there is a lack of clarity regarding which priorities are most critical and what can be deprioritised to ensure the effective allocation of resources.

Transitioning to a more selective approach will be challenging for a council accustomed to delivering good quality services, underpinned by the use of discretionary funds to supplement statutory provision. However, this reprioritising can be successfully implemented underpinned by the principles of the council’s MTFS and the One Sutton transformation programme. This process will require a structured framework for the reprioritisation, supported by clear communication with staff and stakeholders. Such a framework will form a crucial guide for the development of the council’s next corporate plan.

Sutton has adopted a ‘mixed economy’ of service delivery models including in-house delivery, partnerships, shared services and outsourcing. The council forms part of several shared service arrangements with the Royal Borough of Kingston (RBK) and is also an active participant in the South London Legal Partnership and the South London Waste Partnership for waste disposal. These shared service models are a well-embedded feature of the council’s operations, reflecting a strong commitment to partnership working as a core aspect of its delivery approach.

During the CPC, Sutton was consistently described as a responsive and committed partner that listens and adapts effectively. Within Sutton, officers and members generally agreed that the shared operations were broadly working well, offering tangible benefits to the council. Specific examples of success were highlighted in IT and digital services, where the shared working model has delivered notable value.

Given Sutton’s varied delivery model, it is important the council continues to maintain robust oversight for the outsourced services and council companies, ensuring good quality client management and performance monitoring. The peer team would emphasise that while service delivery may be outsourced, the council retains ultimate responsibility and reputational risk. As such, the contracting out and company model demands constant observation and scrutiny to safeguard service quality and manage potential risks effectively.

The peer team also felt it would be beneficial for the council to enhance its internal communications with members and officers about outsourced services and the company model. This would include the rationale behind these arrangements, the opportunities and the risks it poses.

Housing functions in Sutton are delivered through a combination of approaches: Encompass manages homelessness responsibilities and housing allocations, Sutton Housing Partnership (SHP), the council’s arms-length management organisation (ALMO), oversees housing management, Sutton Living Ltd (SLL), a wholly owned development and acquisitions company, focuses on creating and acquiring new homes, and the council itself manages the HRA and the capital programme.

All these different models interconnect and depend on one another. While the housing service appears to be performing well, this mixed model of delivery can lead to confusion and blurring of roles and responsibilities. For instance, the Housing, Economy and Business Committee oversees statutory and non-statutory housing functions, while the Sutton Shareholdings Board handles the council’s responsibilities as the corporate shareholder for companies such as Encompass and SLL. This overlap can create tensions and challenges in decision-making and accountability.

At the July Housing, Economy and Business Committee, a decision was taken to insource the services currently delivered by Encompass in January 2025. This pending insourcing offers a key opportunity to simplify the housing delivery model. By bringing this function in-house, the council will gain greater line of sight over critical areas such as temporary accommodation, allowing for a more holistic and cohesive response to this growing challenge.

To fully capitalise on this opportunity, the council should undertake a comprehensive mapping of its housing operating models to clearly define roles, responsibilities and accountabilities across the delivery framework. Communicating these clarified structures effectively to members, officers and stakeholders will help to build a greater understanding of the system and the rationale behind these arrangements.

As with every London borough demand for housing in Sutton outstrips supply. A recently commissioned Local Housing Needs Assessment identified a borough requirement for 1,078 new affordable homes per year over the coming years. This demand is reflected in the housing register, which currently has over 2,800 households, and the continuing pressure of over 1,100 households in temporary accommodation.

The council has built 160 new council homes in recent years and has a pipeline programme to deliver an additional 450 council homes over the next five years. Several large housing-led regeneration schemes are also underway. At the former Sutton B&Q site, planning permission has been granted for up to 970 homes, including 217 London Affordable Rent units, which the council will be acquiring. The Beech Tree Place regeneration will add 92 flats for rent and shared ownership, while the Elm Grove regeneration will deliver 282 homes, with 50 per cent designated as affordable housing.

Since 2006, Sutton’s housing stock of over 6,000 properties has been managed by its ALMO, SHP. SHP appears to be performing strongly, with upper quartile tenant satisfaction and above average stock condition compared to other London boroughs and ALMOs. For instance, from the 2023/24 Tenant Satisfaction Survey, 72 per cent of tenants rate the overall service from their landlord positively, significantly above the median of 59 per cent. Similarly, satisfaction with the repairs service stands at 70 per cent (median: 63 per cent), and 70 per cent of tenants feel their home is well maintained, exceeding the median of 60 per cent.

This is a strong platform for the council and SHP to build on. Necessary focus will need to be maintained, particularly in preparation for the Regulator for Social Housing inspection. Ongoing budget challenges and pressure on the HRA driven by the multitude of priorities including retrofit, estate maintenance, damp and mould and acquisition of new homes is a continuing obstacle for both the council and SHP.

During the CPC, the peer team spoke to members, officers and senior representatives from SHP, all of whom described the relationship between the council and SHP as “genuinely positive and close … with an understanding of the grey lines”. Striking the balance between maintaining oversight of a crucial function, ensuring alignment with the council’s corporate and HRA priorities while not fettering the abilities of the ALMO requires constant observation and attention.

Amid the council’s financial pressures, SHP has been set savings targets, including a 15 per cent reduction in its annual management fee. While SHP’s leadership expressed confidence in meeting this target, close monitoring will be essential, particularly given the increase in the management fee for 2024/25.

SLL was originally established as the council’s housing development company. SLL has delivered or is forecasted to deliver a total of 473 properties under its current business plan. With the increased challenges with construction and borrowing costs SLL’s business plan has evolved to focus more heavily on the acquisition of affordable housing.

The functions managed by Encompass will be insourced in January 2025. With the market of traded income not materialising, Encompass has been predominantly focused on the challenge of managing the considerable growing demand in temporary accommodation.

Temporary accommodation overspends, forecasted £2.1m at Quarter 2 2024/25, is placing considerable and growing pressure on the council’s finances. As with all London boroughs, Sutton has seen a significant increase in the number of households in temporary accommodation. Sutton had a rate of 11.64 per 1,000 households in temporary accommodation compared to a rate of 12.63 across the borough’s statistical neighbours in London (Quarter 4, 2023/24). Sutton has been consistently below average in the past, however, the difference in Sutton’s rate to these statistical neighbours has been narrowing, suggesting that Sutton has seen a steeper increase in demand proportional to its resident population. This trend highlights the growing strain on the borough's housing system and demonstrates the severe shortage of ‘move-on’ arrangements, leaving many reliant on costly nightly paid accommodation.

The peer team did hear of positive steps taken by Encompass and the council to mitigate this challenge. These include the development of a council guarantor scheme, designed to incentivise landlords and deter the issuance of Section 21 eviction notices.

Action on climate change is a key priority for Sutton. The council commissioned an external analysis of how the borough can reduce carbon emissions. This work evaluated over 750 actions which have been modelled for their cost and carbon effectiveness.

The peer team heard a clear commitment from members to advancing the climate agenda, with efforts to embed climate action across the organisation. Examples of this include the creation of a dedicated climate portfolio, the establishment of the Environment Strategy Board, and the integration of climate impact assessments into all committee and officer delegated decisions.

While the council has successfully delivered a range of notable projects, such as the "Go Green" scheme and the community climate champions, the peer team would question whether there is a gap between the clear ambition the council has and the funded action to urgently respond to the climate emergency Sutton declared in 2019. There is a very significant cost attached to delivering some of the critical climate-related remedial works like retrofitting the council’s housing stock, and it is questionable on whether this is affordable.

To address the funding gap and advance its climate change agenda, the council will need to continue to pursue external investment opportunities and maintain its advocacy role for climate beneficial actions borough-wide encouraging action from private and public sector partners. An example of success in securing external funding is the installation of solar PV panels at Westcroft Leisure Centre, funded through Sport England.

The council’s corporate plan outlines its priorities, with delivery progress monitored through a set of key performance indicators (KPIs). These KPIs are tracked in a monthly performance report presented to the corporate management team (CMT) and reviewed biannually by the relevant standing committees. In the spring of 2024, the council undertook a refresh to streamline KPIs, incorporating new metrics to monitor progress on the four financial sustainability programmes.

Sutton demonstrates good practice in performance monitoring, utilising the Pentana system to house all corporate KPIs, where both members and officers can access the live data. This is a helpful platform for tracking performance but as part of progressing the council’s digitalisation ambitions the peer team would encourage the council to explore utilising Power BI and other advanced analytical tools to enhance tracking and data visualisation. The council has improved its recording of performance information but recognises there is more that could be done to improve the way that elected members access and scrutinise performance information as well as thinking about how to increase the transparency and accessibility of performance information to residents.

The peer team reviewed the CMT performance report and found it to be well presented, providing a summary of service performance while identifying strengths, challenges and priority areas for resolution. Positively, the report embeds benchmarking data, allowing for valuable comparisons and context.

Sutton has demonstrated strong performance across several statutory inspections and reviews of its core services. Children’s social care services were rated ‘Good’ with ‘Outstanding’ leadership by Ofsted in 2021. Progress can be demonstrated with the council’s SEND service, which in 2018 required a written statement of action. While improvements are evident, this remains an area for development, particularly in addressing the rising costs within the High Needs Block, which continue to present financial and operational challenges.

Beyond these key externally assessed services, the council’s headline indicators, captured in the LGA’s LG Inform data comparison tool are generally in line or often compare favourably with other London boroughs:

Examples of strong performance:

• Education, Health and Care Plans (EHCPs): 92.9 per cent of EHCPs are issued within the 20-week limit, significantly outperforming the average of 70.3 per cent among statistical neighbours.
• GCSE attainment: In the 2023/24 academic year, 8 per cent of pupils in Sutton achieved grades 9 to 5 in English and Maths. This compares to 55.4 per cent in London and 46.3 per cent nationally, making Sutton the second best-performing borough in London.
• Planning applications: Sutton processed 96.9 per cent of major applications and 96.1 per cent of non-major applications within timeframes, outperforming statistical neighbours (92.8 per cent and 89.2 per cent respectively).

Examples where Sutton is an outlier or performing below other London boroughs:

• 2022/23 affordable housing delivery: Sutton completed 145 gross affordable homes, significantly below the mean for all London boroughs of 478 homes.
• General Fund Reserves: Sutton has the third-lowest level of general fund reserves as a percentage of service spend among London boroughs.

Overall, Sutton demonstrates solid performance in its core services, providing a strong foundation as the council works to address its financial challenges and advance its priority areas.

Sutton is navigating a transitional period following a change of Leader in May 2024, marking the first leadership change in over 12 years. While the organisation has benefited from stability and experience under the previous leadership, this change presents significant opportunities to renew its approach, particularly in the council’s place leadership role. The new Leader is increasingly stepping into this role, acting as a figurehead for the organisation, making this an ideal time to shape and define the Sutton brand – a topic explored further in the Place Leadership section of this report.

The new Leader’s approach, described to the peer team by members, officers and partners as deliberative, inclusive, and consultative, has been warmly received and seen as a strength in fostering collaboration and engagement. Upcoming events, including the staff conference and the Sutton Community Awards, offer valuable opportunities for the Leader to build his profile and communicate his vision for the borough.

The council benefits from the experienced and highly regarded chief executive, members, officers and partners commended her proactive and inclusive approach. The chief executive plays an important leadership role within the subregion at both the South London Partnership and London Councils.

Sutton’s stable CMT operates effectively, balancing supportive collaboration with appropriate challenge. While the chief executive’s internal visibility across the organisation is a significant strength, the peer team would encourage senior officers to seek out opportunities to increase their visibility across the council and especially with frontline staff.

The best performing councils have a bedrock of strong working relationships between the political and officer leadership – this is something which Sutton benefits from.

Sutton has weekly strategic team meetings with the political and officer leadership to discuss upstream emerging issues and review upcoming committee reports. This is an important forum, covering multiple purposes including securing collective ownership for policy across the senior member team. A potential flaw with the committee structure is that policy decisions are delegated to the relevant standing committees, this can lead to silos developing and not achieving strategic alignment. Strategic Team meetings are a helpful chance for administration members to ensure policies are reviewed through a corporate lens to help mitigate the issue of siloed working and promote more integrated governance.

Given the recent political changes, the council may want to consider a programme of facilitated workshops for senior members and CMT. These sessions could focus on defining the political vision, working effectively together to address challenges and drive progress on priority actions.

Sutton demonstrates a strong and proactive commitment to equality, diversity and inclusion (EDI), embedding these principles into its policies, practices and organisational culture. The council developed a dedicated EDI strategy, in response to the 2020 staff survey. Its implementation is supported by the EDI Steering Group, comprising EDI champions from each department and assisted by HR, who oversee the breadth of ongoing work and provide quarterly updates to the CMT.

The council has implemented a range of programmes to advance its EDI goals. Notable initiatives include a reverse mentoring programme and recognising care leavers as a protected characteristic. In collaboration with staff, the council also developed an inclusive language guide, which has been adopted internally and by some external partners. The development of this guide was welcomed by the staff networks and the Trade Unions.

Celebrating Sutton’s increasing diversity is another area of focus. Valued examples were shared of working with communities to deliver events such as the Lunar New Year festival and initiatives supporting the welcome of Hong Kong residents.

The council has undertaken efforts to diversify its workforce, so it reflects the communities it serves, such as introducing diverse recruitment panels. There does though remain scope to improve the diversity of the workforce particularly at the senior leadership level. The council should consider implementing good practice from other councils of dedicated diverse leaders organisational development programmes.

The council’s efforts with regards to EDI have received external recognition. In 2022, Sutton, in partnership with RBK, was shortlisted for its EDI work at the Public Sector People Managers Awards and won an award at the MJ Achievement Awards in the Workforce Transformation category. Sutton was also the first local authority to be awarded the Race Equality Matters Silver Trailblazer Status for its efforts to tackle racial inequality. Importantly this recognition of the importance of EDI is reflected in the 2023 pulse survey which demonstrated that 87 per cent of staff believed the council is committed to EDI.

Sutton has six well engaged staff networks, led by committed and passionate staff who feel supported and whose contributions are valued by the organisation. Positively the council provides dedicated time for Chairs and Vice-Chairs to advance network activities, alongside budgets to support their initiatives. Each network is sponsored by one or more senior managers, ensuring visibility and advocacy at the leadership level. The peer team observed that these networks are a prominent and visible feature of the council, playing a vital role in supporting staff, enhancing engagement and driving the council’s commitment to EDI across the organisation.

Place leadership

The LCH is a flagship initiative in the borough and showcases Sutton’s longstanding partnership excellence. Since its inception in 2013, the LCH has become Europe’s leading cancer research district. This landmark scheme, supported by both public and private investment, has established a global centre of innovation in cancer research and drug discovery in Belmont. During the CPC, there was a strong and consistent view from partners that progress to date would not have been achieved without the council’s convening powers and influence; “a culmination of years and years of effective partnership working”.

The site is now entering an exciting new phase of development. In January 2024, the council confirmed the selection of Aviva and developer Socius as partners to develop a 5-hectare site on the LCH campus. The planning application for the next stage of development is expected in early 2025. 

Given the pending growth and expansion of the LCH now is an exciting opportunity for the council to bolster its promotion of the Cancer Hub site and the wider borough as opportunities for inward investment. The council should continue its efforts of working closely with the South London Partnership and the GLA. The site forms one of London’s most significant regeneration projects and will play a key part in the Mayor of London’s and the Government’s economic growth agenda.

The London Cancer Hub provides the council a platform, Sutton should embrace the identity as the “the life science capital of London”and leverage this to form a unifying brand narrative. The LCH provides the chance to cement Sutton’s reputation as a borough of STEM excellence. Connecting the growth and opportunity from the LCH through to the borough’s schools, adult skills development and local businesses – through, for example, the provision of retraining opportunities and apprenticeships.

The peer team heard that the LCH is a rare large-scale development that has faced limited opposition and enjoys broad public support. Therefore, it is even more crucial to ensure that the LCH delivers tangible benefits for Sutton residents too, such as through the creation of new jobs and the attraction of businesses to the borough.

Despite significant financial pressures, the council has made a strategic decision to prioritise regeneration projects within the borough due in part to the belief of the positive impact it will have on communities. A good example are the plans for Sutton town centre, the council made a significant capital acquisition in 2021 in purchasing the St Nicholas Centre for £26m. In October 2022 the council announced plans to redevelop the shopping centre into a new civic hub, a library, customer centre, community centre and commercial spaces, with Sutton College relocating to a nearby site on the high street.

To drive these plans forward, the council has recently appointed a development partner to oversee the project, which also includes the construction of new homes on a number of council-owned sites (the current civic centre, Gibson Road car park, and the former Secombe Theatre). While these regeneration initiatives are a good demonstration of Sutton’s ambition, the council must continue to closely monitor and manage the accumulated risks it is exposed to, particularly around financial assumptions related to land values, development partner contributions, and the viability of housing developments.

The peer team felt the council is well-positioned to develop a coherent and compelling ‘brand Sutton’ offering. A crucial element will be moving into the space of being a place champion: shifting the council from its historically understated approach to boldly promoting Sutton. This move should be grounded in the development of a dedicated communications and engagement strategy. This should build on the council’s multiplatform engagement, using positive messaging to promote Sutton’s successes such as the LCH, regeneration projects and climate initiatives.

Aligned with this the peer team felt the council should develop a dedicated inward investment strategy to attract businesses and funding. By showcasing Sutton through a well-articulated investment prospectus, the council can highlight opportunities and design campaigns to attract businesses in priority sectors, demonstrating Sutton’s potential as a destination for innovation and economic growth.

In 2017, the Sutton Plan was established through a collaboration between public sector partners, CFCS representatives and local businesses. This initiative represents a shared commitment to working together based on common principles and a unified vision for the borough.

During the CPC, the peer team got a clear sense of a strong history of effective partnership working which provides a useful foundation to build on moving forward. Partners consistently described the council as “great to work with and open to collaboration”, with productive working relationships positively supplemented by strong partnership structures. A good example of this is the involvement of the Metropolitan Police and the London Fire Brigade in key governance boards, including the Safeguarding Adults, Safer Children’s, Safer Sutton and Domestic Abuse Boards.

The partnership between the council and the police, particularly through the Safer Sutton Partnership, was identified as a key area of strength. Notable initiatives, such as the DRIVE project, are testament to this collaborative approach.

With Adult social care being the major cost driver in Sutton, it was reassuring for the peer team to hear of productive and mature relationships across the Sutton Health and Care Partnership. A standout feature of the partnership is the Sutton Health and Care Provider Alliance, this integrated provision when working with the provider market is impressive and surpasses the arrangements in place within many other London ICSs.

The provider alliance gives the Health and Care Partnership a strong basis to build on, this is particularly important in the development of the refreshed Health and Care Plan. However, the peer team did hear of opportunities for improvement, around the integration of the provision and delivery of mental health services. Additionally, around enhanced collaboration through shared budgets and revisiting the principles of One Public Estate.

While almost all the external partners the peer team spoke to praised the council, feedback from some CFCS organisations indicated a need for more joined up working and earlier involvement in the whole journey of service change. A particular highlight of collaborative working between the council and the CFCS was during the pandemic, where new strategies for delivery were employed. There was a clear enthusiasm within the CFCS to revisit some of these approaches and intentions, particularly around policy development and longer-term grant funding.

The peer team would encourage the council to consider refreshing its joint Compact with the CFCS. This updated agreement should prioritise co-production, early collaboration and system-wide working to achieve shared objectives, particularly in prevention efforts and support for vulnerable groups.

Sutton’s last residents’ survey was in 2018 and given this length of time, the peer team recommend the council to commission a borough-wide survey. The council ran the ‘Stronger Sutton Conversation’ in August 2021, but this research was specifically focused about the impact of the pandemic and where the council should focus support. A dedicated borough-wide benchmarkable survey would be a helpful exercise in demonstrating residents’ perceptions of the council, their priorities and satisfaction levels. This could provide useful insights particularly as the council looks to develop its next corporate plan.

Sutton operates the committee system of local government governance, in the form of the standing committees for Environment and Sustainable Transport; Housing, Economy and Business; People; and Strategy and Resources, the latter of which is chaired by the Leader.

The decision-making processes in Sutton are deliberative and collaborative by nature. These are core principles to the council, but at times can cause delays with significant periods of time occurring from policy development to decision making. Like all councils, Sutton is having to take increasingly difficult decisions, and this requires agility and decisiveness. It is important the council assures itself that its governance processes allow it to make decisions in a timely manner so it can realise both its ambition and remain financially sustainable.

The work of the Local Committees and the thematic committees provides the opportunity for all councillors in Sutton to focus on council services, what is going on in communities, and local issues. This involvement of all members, who exhibit a wide variety of talents and backgrounds, brings a real strength to the council and is part of ethos of Sutton.

The council’s six Local Committees are established forums for engaging with communities, but there is an upcoming opportunity to review their effectiveness and impact. The organisation’s capacity is stretched and servicing the Local Committees is resource intensive, with limited attendance numbers from residents at some committees. With other methods of resident engagement running in parallel, it is helpful the council’s Scrutiny Committee is conducting a review of the Local Committee model, drawing on best practices from other councils to assess their value and identify opportunities for improvement.

Relationships between different groups of members, and between members and officers in Sutton are generally mature and constructive, contributing to a positive working environment. However, the peer team were made aware of some limited instances of inappropriate conduct, which can detract from the council’s important business and can consume valuable time managing these. Ensuring that relationships across the organisation are underpinned by mutual respect and professionalism is essential to maintaining a productive and collaborative culture.

The council’s leadership expressed a clear commitment to fostering an environment where robust debate is encouraged while operating within the context of high standards of conduct. Group leaders and group whips play a critical role in setting and upholding these standards, providing leadership and accountability to ensure that all interactions reflect the council’s PRIDE values.

Helpfully the council has developed the ‘Principles of How We Work’ document which provides a useful framework for the operation of the council’s governance in particular around the different roles and responsibilities of members and officers. The peer team saw a few areas where the application of these principles could be improved, for example in the presentation of reports at committee. To ensure effective debates, the substance of discussions should be led by lead members and committee chairs, with officers providing support as subject matter experts only when necessary. Striking this right balance of members feeling confident to lead and drive debates without deferring to the knowledge of officers beyond necessary is important. Achieving this may require additional preparation time for members, ensuring they are comfortable with the content and equipped to manage and respond to questions during committee discussions.

Sutton has a robust approach to managing risk, with a regularly monitored and updated corporate risk register. These risks were well understood by officers at the CMT level, but there remains an ongoing need to ensure these risks and mitigations are understood across the organisation. Corporate risk reports are of a good quality, and it is positive that all critical services have business continuity plans in place.

Internal audit has a respected role in the council with a robust programme of audits in place. The 2023/24 annual report from the Head of Internal Audit provided ‘reasonable’ assurance on the adequacy and effectiveness of the internal control environment. One area for the council to explore is the relationship between the council’s internal audit function and the audit arrangements in the ALMO and the wholly owned companies. Given the service responsibility ultimately rests with the council, Sutton and its internal auditors require the necessary information to provide assurance that risk is effectively managed within the companies. Strengthening these relationships and access to information would be beneficial.

The peer team’s view aligns with that of the external auditor: “the council's understanding of and planning for risks appears sound and we have not seen evidence to indicate any risk of a serious weakness”. While no major weaknesses were identified by the external auditor, overall judgements for financial sustainability, governance and efficiency declined to from a green to an amber status, which reflects the significant financial pressures and high service demand.

The council has unqualified audited accounts up to 2022/23, which supports the judgment that financial management appears to be sound. Furthermore, the council demonstrates good practice in carrying out annual self-assessments against the CIPFA Financial Management Code requirements.

The Sutton Shareholdings Board plays a key role in overseeing the performance of the council’s wholly owned companies. The board meets biannually to review company performance against agreed KPIs, assess the alignment of business plans with the council’s corporate plan, and provide oversight of the discharge of statutory functions.

With the insourcing of Encompass, the peer team felt the council should consider opportunities to strengthen the functions of the board and its oversight role. This can involve a review of company performance metrics and commissioning reviews of the companies where risk, performance and finances are challenging.

Under Sutton’s committee system, the scrutiny committee performs the scrutiny functions which do not fall under the standing committees; subjects include health, crime and disorder and flood risk management. The peer team heard described to them a good example of effective scrutiny in reviewing NHS England’s proposal to relocate paediatric cancer treatment from the Royal Marsden Hospital to an alternative facility. This inquiry involved collaboration across the ICS footprint and provided a forum for member and resident engagement in the matter.

Although under the committee system there is not the statutory responsibility to have a scrutiny committee, given Sutton has this the peer team would encourage the council to consider having an opposition member chair this committee to reflect best practice in the sector.

The council has a well-established member induction and development programme. Five development sessions on a broad range of subjects are delivered annually, with yearly updates reported to the Audit and Governance Committee. The council should continue to refresh this programme, taking insights from members particularly as it looks to develop the induction programme following the May 2026 election.

Attendance at training sessions has been mixed. There is an important role for group leaders in setting expectations on their members to attend and supporting them to invest time in these training programmes which are designed for their personal development. It is positive that some members have signed up to some of the LGA’s Leadership Essentials training, the peer team would encourage other members to explore these often fully funded training sessions and also explore the possibility of securing an external political mentor from another council.

One of Sutton’s greatest strengths is its positive organisational culture, consistently described during the CPC as “friendly, supportive and team oriented.” This culture fosters a sense of collaboration and togetherness, which contributes to the council’s overall success. Staff exhibit strong morale and a genuine commitment to the council’s Ambitious for Sutton vision, reflecting pride in their work and dedication to delivering for residents. This is well demonstrated by October 2023 pulse staff survey which reported a good level of job satisfaction and a recognition of the council’s commitment to being a diverse and inclusive workplace. The peer team would recommend when commissioning future staff surveys the council makes best use of the national benchmarks which are available so comparative analysis can be carried out.

The council recently undertook a multi-stage engagement exercise to refresh the organisational PRIDE values to People-focused, Responsible, Inclusive, Delivering, and Empowering. Positively, these values resonate strongly across the organisation, setting the expectations and standards for how the council operates.

The peer team were also pleased to see that staff recognition was built into the culture of the organisation. Initiatives such as the annual PRIDE Awards, Long Service Awards and the ‘Wall of Thanks’ play an important role in acknowledging and celebrating the contributions of the workforce, reinforcing a sense of value and appreciation across the organisation.

Sutton’s revenue budget at Quarter 2 2024/25 is forecast to overspend by £6.6m on services which is due to be met through the £2m budget contingency, £2m expected corporate underspend and a £2.6m reserve drawdown. The directorate overspends come from expected sources: Housing with a forecast variance at £2.1m, followed by Adult Social Care £1.8m and Children’s Social Care £1.8m.

At the point of the CPC, the council was forecasting a near-balanced position for the 2025/26 budget, this is an impressive place to be and marks the council as an outlier relative to other London councils. Albeit this position is dependent on the local government settlement and the member approval of some of the £13.2m of savings which are built into the draft budget.

The council has an established MTFS which sets out the financial principles that the council will adhere to. The MTFS is complemented by an annual Medium-Term Financial Plan (MTFP), which sets out spending plans and maintains an updated future outlook for a rolling four-year period. A considered approach is taken to maintain alignment of the annual budget, MTFS, corporate plan and the One Sutton transformation plan.

The current forecast budget gap over the MTFS to 2027/28 is £19.9m which is estimated to reduce by £4m post local government settlement. There was good confidence from the finance function that this gap could be effectively managed.

In recent years, the council has faced growing service overspends, in 2022/23, services overspent by £12.3m, followed by a £15.4m overspend in 2023/24. These overspends have been managed through a combination of the £2m annual budget contingency, drawdowns from reserves and the significant corporate underspends.

Reliance on corporate underspends have been notable, with £7.9m in 2022/23 and £11.8m in 2023/24 used to offset overspends. This trend suggests a need for right-sizing the budget to better align funding with service demands. Successfully addressing this for the 2025/26 budget could alleviate the council’s reliance on corporate underspends and create opportunities to bolster reserves, strengthening Sutton’s financial resilience.

The council benefits from a well-regarded and stable finance team. The finance business partner model is effective, providing advice and constructive challenge to services. Positively, there is not an overreliance on the business partners, with directors and managers demonstrating a strong ownership of their budgets, taking responsibility for financial management and recognising the critical importance of delivering savings to balance the budget.

Since 2011/12, the council has delivered over £118m in savings and efficiencies, reflecting a strong track record of achieving savings plans incorporated into its budget. In recent years where savings have not been fully realised, mitigations have been developed through the identification of alternative savings or reducing non-essential spending, to address shortfalls. This level of performance in delivering savings is on track to continue in year, with £10.3m of the £10.9m planned savings at Quarter 2 forecast to be achieved.

To balance over the MTFS period, £17.1m worth of savings are planned. However, given the cumulative effect of savings being delivered over the last decade, the savings are becoming increasingly difficult. People services in particular stressed the growing difficulty in meeting targets without impacting service delivery. This underscores the necessity of the One Sutton transformation programme in redesigning services to improve outcomes but also reduce costs.

Sutton have the third lowest general fund reserves in London. This poses a significant financial risk to the council. As of 31^st March 2024, the council’s general fund reserves stood at £8.9m, just above the CIPFA minimum recommended level of 5 per cent of revenue expenditure. There are also other earmarked reserves available if required, albeit these too are limited, but they have increased over the past five years. This lack of financial buffer nevertheless reduces the council’s ability to absorb unforeseen financial shocks and heightens the premium and need for tight financial control.

Despite the low reserves, the Section 151 Officer expressed confidence that the current level was sufficient, noting that reserves had remained stable for nearly a decade prior to 2023/24. This stability positively indicates to an organisation which manages its financial risks well and is able anticipate and manage pressures within overall budgets.

However, given the risk the council is exposed to, the peer team would agree with the external auditors, who made a specific improvement recommendation, about elevating the level of general fund reserves. While conscious that bolstering general fund reserves will likely mean a greater number of savings are required, in doing so it would improve the council’s financial resilience particularly at a time of unknown pending structural central government funding changes.

Like many councils, Sutton has faced significant slippage in the delivery of its capital programme. For example, in 2022/23, actual spend was £25.3m against a budget of £38.8m, and in 2023/24, spend reached £40.6m against a budget of £54.3m. However, the council is confident progress has been made in addressing this. For 2024/25, the general fund capital programme budget increased to £75.5m, and at Quarter 2 95 per cent of the budget (£72.4m) is forecast to be delivered. This would suggest the review of the capital programme the council undertook, which led to the establishment of a Capital Board to oversee spend and implement lessons learned, is operating well. Priority areas identified were to improve profiling, embedding processes and challenging budgets to ensure effective financial management and delivery.

The council’s HRA is increasingly stretched and requires urgent prioritisation. The deliverability of the current 30-year HRA business plan is highly questionable because at current costs, it will not be possible to fund all intended activities. Sutton’s overall investment requirement over 30 years now amounts to £640.4m. A very significant element to the gap over the business plan is the cost of achieving the 2050 net zero carbon target which accounts for £151.4m of this figure (24 per cent). When inflation is factored in, however, the £640.4m total rises to £1.2bn.

Part of the reason for the funding gap in the 30-year business plan is due to the number of competing priorities, which include:

• Maintaining housing stock to the necessary building safety and compliance requirements to meet the decent homes standards.
• Climate change ambition and the investment in the council's housing stock including measures to decarbonise properties, progress retrofit and achieve Energy Performance Certificate (EPC) C by 2030 in line with government targets.
• Building new homes and acquiring properties through the HRA.
• Investment to tackle urgent and emerging pressures such as tackling damp and mould.

Given the multiple demands on HRA funding, there is a clear need for a comprehensive review of forecasted expenditure. This review should incorporate a prioritisation framework to ensure resources are allocated effectively and explore innovative approaches to addressing the significant funding shortfall.

The HRA business plan in its nature is an iterative document but given expected government policy changes around the 10-year rent settlement, review of the Right-to-Buy scheme and funding for retrofit it will be important to bring forward an updated HRA Business Plan in the spring of 2025.

Sutton has an investment property portfolio valued at £96m in March 2024, which contributed an annual net income of £6.9m during 2023/24. The council has demonstrated a pragmatic approach to managing its assets, a good recent example is the disposal of its sole out-of-borough commercial investment, Oxfam House, for £37m during 2023/24. The proceeds have been used to support the council’s capital programme while also providing funds as part of the flexible use of capital receipts to fund transformation.

Sutton has developed its ‘One Sutton’ transformation programme which incorporates the four financial sustainability programmes on priority areas – Adult social care, Children’s social care, temporary accommodation and SEND – and the enablers of change in digital innovation, community engagement, partnerships and cultural development.

As with all councils with social care responsibilities, People Services represent Sutton’s largest area of expenditure. Partly driven by Sutton’s demography, in 2023/24 the council has the second highest social care spend as percentage of core spending power in London, with 79.6 per cent this is considerably higher than the London median of 65.1 per cent. However, comparative analysis shows that Sutton’s spending per head on adult social care, children’s social care, and education is broadly comparable with its statistical neighbours. The higher proportion of core spending allocated to social care reflects the high level of demand for these services in Sutton.

A significant amount of work was described to the peer team that the council has undertaken to better understand demand across the system and identify levers to affect change. A major focus has been placed on reducing reliance on high-cost external residential placements through strategic capital investment in accommodation options for looked-after children. This includes the construction of Willow Rise, a new children’s home, and two additional satellite homes. This is a good demonstration of an innovative approach with only a very few local authorities taking forward a satellite model of practice.

The peer team heard described to them a marked improvement in the council’s relationship with schools. The school representatives the peer team spoke with reported positive experiences of collaborative working with the council, noting that while they may not always agree on every issue, there is a collective focus that remains firmly on finding solutions for children and young people. This positive engagement is well demonstrated by the active participation of headteachers in recent council Scrutiny Committee inquiries.

A particularly strong example of effective collaboration is the council and schools working together to support SEND pupils within the High Needs Block. Through a mature and co-operative approach, an agreement on the disapplication of 0.5 per cent from the High Needs Block was reached. This is good demonstration of the strength of relationships in addressing a complex challenge.

Sutton is facing escalating pressures on its Dedicated Schools Grant (DSG), driven by rising costs in the High Needs Block and an increasing number of children with EHCPs. These trends have led to the DSG moving into deficit for the first time in 2023/24, with an in-year overspend forecast of £8.6m, resulting in a projected total deficit of £10m.

SEND is one of the council’s four financial sustainability programmes. By flexibly using capital receipts, Sutton has established a standalone transformation programme in SEND which will oversee the development of a DSG deficit reduction plan. Sutton are in discussion with the Department for Education regarding this plan as this will prove a crucial part as the council seeks to create a more financially sustainable system through its SEND transformation programme.

However, the council faces significant risk if the current statutory override allowing DSG deficits to be carried forward is not renewed beyond 2026/27, further emphasising the urgency of these measures.

It is positive the council commissioned an Adult Social Care Preparation for Assurance Peer Challenge which was delivered in July 2024. The review highlighted several strengths, including positive examples of co-production with individuals with lived experience, such as the development of the new employment support contract for disabled people. It also identified areas for improvement, notably the need to fully embed the new adult social care prevention strategy and enhance the engagement with the CFCS in general and in particular in delivering preventative services. It is important the improvement plan which was developed in response to the recommendations from the peer review which forms part of the Adult social care financial sustainability programme is implemented as a priority ahead of the CQC inspection.

The creation of a dedicated transformation programme management office to help implement the One Sutton plan, deliver service improvements and savings is positive. The peer team found there to be robust governance, with dedicated programme boards for each financial sustainability area featuring cross-council representation, and regular reporting to CMT. Across the organisation, there is a good understanding of these programmes and a recognition of these as the council’s major cost drivers.

However, there is an opportunity to enhance communication and alignment around the broader transformation agenda within One Sutton, beyond its association with the financial savings required by the four sustainability programmes. This aspect of the transformation feels underdeveloped and would benefit from clearer articulation and a consistent narrative that connects it to the council’s vision. Members and officers are seeking greater clarity, and this could be effectively addressed by delivering some priority projects through digitalisation and IT improvements.

The council acknowledges that it is at an early stage of digital transformation, describing itself as being “at the foothills of using new technologies and artificial intelligence.” Helpfully though, there is a clear recognition of the importance of accelerating the digital programme and embedding it across the organisation. The peer team noted a strong determination to learn from best practices and strategically adopt new technologies to drive innovation, efficiencies and improved service delivery.

The potential of digital transformation to enhance productivity and streamline processes is significant, offering a key opportunity for the council to modernise its operations. However, to fully embrace these opportunities, the council will need to adopt an innovative mindset and be willing to take calculated risks in testing and implementing new approaches.

To achieve this, the council should establish a clear roadmap to guide the digital programme and further embed data-driven decision-making across the council. The upcoming Digital and IT Strategy, due to be presented at the December Strategy and Resources Committee, is a positive step forward. Its successful delivery will be critical to ensuring that the council can harness the full potential of digital transformation.

Sutton faces significant organisational capacity constraints as it works to deliver its priorities within the context of a relatively small workforce of approximately 1,200 staff and an increasingly constrained financial envelope. These challenges reinforce the importance of prioritising activities to ensure the council’s ambitions are balanced with its ability to deliver effectively. 

To monitor and manage these constraints the council has an established HR and organisational development strategy. Refreshed in 2022, the strategy is built around six core themes: a culture that promotes PRIDE in Sutton, Workwell, strategic resourcing and workforce planning, a learning organisation, people management and diversity and inclusion. Each theme has a programme of deliverables underpinning them.

During the CPC, the council shared an innovative example of supporting new residents in the borough and helping to address workforce shortages. In May 2024 a community engagement event revealed that many Hong Kong residents faced barriers continuing their social work careers due to unrecognised qualifications. In response, the council partnered with Kingston University to launch an internship programme, enabling participants to gain UK recognition for their qualifications. Sutton has also committed to guaranteeing programme graduates an interview for a social work position.

Sutton demonstrates an impressive commitment to organisational development, investing in initiatives that upskill staff and support career developments. The council’s Aspiring Leaders and Aspiring Managers programmes have engaged over 70 participants to date. Other programmes such as the mandatory climate awareness training for managers aligns with the council’s environmental priorities, the council may want to consider offering this training to all staff and members too.

The council has introduced its ‘Grow at Sutton’ recruitment and retention programme to offer development opportunities and retain high calibre staff. Sutton are committed to supporting apprenticeships, with 49 apprentices in post as of March 2024. The council also participates in the Impact graduate scheme providing opportunities for those at the start of employment to build a career in local government.

A positive recent initiative the council ran to involve all staff in the organisational transformation and foster a culture of thinking differently was the “Ideas Fest”. Staff were invited to submit an idea about a new initiative, a new process the council could do better or the reimagining service delivery. This culminated in an event where staff voted for their favourite ideas some of which are now being implemented.

It is recognised that senior political and managerial leadership will want to consider, discuss and reflect on these findings. The LGA will continue to provide on-going support to the council. Following publication of the CPC report the council will need to produce and publish an action plan within five months of the time on site. As part of the CPC, the council are also required to have a progress review and publish the findings from this within twelve months of the CPC. The LGA will also publish the progress review report on their website.

The progress review will provide space for a council’s senior leadership to report to peers on the progress made against each of the CPC’s recommendations, discuss early impact or learning and receive feedback on the implementation of the CPC action plan. The progress review will usually be delivered on-site over one day.

In the meantime, Kate Herbert, London principal adviser, is the main point of contact between the authority and the LGA and her e-mail address is [email protected].