Government sends warning to Cambridgeshire authority

The Department for Levelling Up, Housing and Communities (DLUHC) issued a best value notice to CAPCA, stating improvements to issues dating back to 2020 which need to be made. 

In the notice, issued on January 20, Max Soule, deputy director of local government stewardship at DLUHC, said “significant concerns” were raised by external auditor Ernst & Young last June. 

Mr Soule said: “[This audit confirmed] significant weakness in the authority’s governance arrangements that they believe to be pervasive.” 

The notice told CAPCA that failure to "demonstrate continuous improvement" could lead to intervention by the government.

CAPCA were found to have “significant delivery concerns in some of the programmes delivered” and “concerns around partnership working” dating back to former mayor James Palmer’s time in charge, the notice read.

Last summer, more than £1.3 million in ‘levelling up’ funding for CAPCA was suspended following concerns about how the authority was carrying out its responsibilities. 

Mr Soule said DLUHC will be taking “a precautionary approach to the transfer of funding to CAPCA until we have assurance that there are appropriate plans in place to reach a resolution. 

“Given the seriousness of the issues identified, a failure to deliver the level of change required at sufficient pace would be very concerning.” 

In response to the notice, CAPCA said the issues raised by Ernst & Young’s letter have been noted in an improvement plan set up by the authority. 

A spokesperson for CAPCA said that an improvement plan has been in progress for several months. 

“Steps are already under way which have been identified by the interim CEO, Gordon Mitchell, to address the areas of concern,” said the spokesperson. 

“A proposal for an initial improvement plan was agreed by the Combined Authority Board on October 30, which address the governance issues and other areas identified for improvement.” 

Gordon Mitchell, interim CEO of the Cambridgeshire and Peterborough Combined Authority, is leading the authority's response to concerns raised. (Image: CAPCA)

Ernst & Young’s findings came after a code of conduct investigation into mayor Dr Nik Johnson and a whistleblowing inquiry was launched. 

The auditor’s report was also revealed after Eileen Milner, former chief executive at CAPCA, announced she intended to resign after just months in her role.

Mr Soule said the DLUHC expects CAPCA to “fully engage with the Independent Improvement Board (IIB) and its recommendations. 

“[We expect CAPCA to] continue in its efforts to deliver at pace against the improvement framework and the action plan.” 

CAPCA is also expected to carry out a “robust, open and transparent recruitment campaign to make permanent appointments to its senior team in a timely manner. 

“The DLUHC will also look to the Independent Improvement Panel for regular updates and assurance on the Authority’s plan and its delivery as part of our engagement on this matter,” said Mr Soule. 

Mr Soule wrote that the DLUHC wants the authority to conduct investigations at speed and implement change in the relationships between officers, members and with the mayor’s office. 

An IIB have met to review progress made by CAPCA, which says it is “fully committed to implementing their recommendations. 

“Whilst there is much to do, good progress is being made and the IIB are supportive with the direction the improvement is taking.” 

A best value notice is a formal notification that a government department has concerns relating to an authority, requesting that the authority engages with that department to assure it will improve. 

The notice, which can be withdrawn or escalated at any point, will be in place for 12 months, but will be reissued if the DLUHC feel it is necessary.