Red flags missed over council overspend - report

Law firm Heminsley looked at historic failings at Guildford Borough Council from 2021

Red flags should have been spotted by senior officer leadership at Guildford Borough Council, an official report into overspend of millions in housing contracts has said.

Law firm Heminsley looked at historic failings in the housing service from 2021, which led to about £15m being overspent and work carried out that was deemed unnecessary.

The report, published on Thursday, said historic governance issues, high workloads and financial and IT problems played a part in allowing warning signs to go unnoticed.

Guildford Borough Council said it was committed to ensuring future transparency, accountability and effective governance.

The investigation, jointly commissioned by Guildford and Waverley Borough Councils, detailed how the council would have had sight of one of two whistleblowing reports by February 2023 which raised concerns over spending with a housing contractor.

At this point, senior employees could have had sufficient evidence, leading them to conclude there were significant risks to that contractor, Heminsley found.

The law firm wrote: "They could (or should) have concluded that there were significant risks related to the contractor."

In mitigation, the report referred to inherited governance issues at the council as well as documented problems with financial IT systems.

They also described high workloads and a wide range of responsibilities for some in senior management roles.

They also referenced issues at the council flagged by a 2024 report by Society of Local Authority Chief Executives (Solace).

Leader of Guildford Borough Council Julia McShane said: "Our residents deserve a council that delivers best value for them.

"Our priority is to do the right thing, not the easy thing, for the benefit of our residents and businesses."

A South East Regional Organised Crime Unit (Serocu) investigation is ongoing.