Local Government Transparency Code Violations and Thousands in Payments to Dissolved Firm Raise Alarms
Westmorland and Furness Council is under intense scrutiny following revelations of failures over financial transparency data and payments of thousands of pounds to a dissolved company.
The local government transparency code, designed to foster accountability and public involvement in local decision-making, mandates clear, regular, and accessible financial disclosures from authorities. However, Westmorland and Furness Council has come under fire for its failure to comply with this code.
At a Westmorland and Furness council meeting held in Kendal on Thursday, Council Leader Cllr Jonathan Brook (Libdem) faced tough questions regarding the council's lack of transparency in disclosing its spending required under the Local Government transparency code.
In response, Cllr Brook cited the complexities arising from recent local government changes as the reason behind the delay in publishing expenditure data stating the council had multiple accounting systems in operation and had decided to hold back publication. He assured that the missing data would be made available, with April's information already online and May and June data soon to follow.
However, the bombshell came when a representative from Putting Cumbria First questioning the council leader, raised concerns about substantial payments made to a limited company that had been dissolved in January 2019. It was revealed that in April 2023, Westmorland and Furness Council had paid nearly £50,000 to the dissolved company, with an additional £8,000 paid in June.
When pressed for an explanation, Council Leader Brook deferred, claiming that a written response would be provided due to the recent release of the data.
Following the meeting, Putting Cumbria First said it is escalating the matter by reporting the financial irregularities to Companies House and HMRC. The discrepancy, which amounts to over £65,000 paid in just three months to a company long dissolved, has raised serious concerns about the council's financial oversight and compliance with the local government transparency code.
A Putting Cumbria First's spokesperson expressed grave concerns about the situation, stating, "Whether it's a failure to safeguard public funds or publishing inaccurate accounting reports as required under the local government transparency code, Westmorland and Furness Council has made a deeply concerning error with public money that warrants immediate investigation and action. At a time when councils nationwide are facing financial crises, such lapses are simply unacceptable."
The scrutiny has now extended to Cumberland Council, with another member of Putting Cumbria First also questioning their finances, echoing the concerns raised against Westmorland and Furness Council.
Westmorland and Furness Council has yet to provide any further comment on this escalating situation, leaving the community and stakeholders eagerly awaiting answers to these pressing financial questions.
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