To receive the report on the outcome of the Local Government Association Corporate Peer Challenge, held 23 - 26 June 2025, and to approve the council’s action plan in response to the recommendations for publication.

ChildrenCHTHE MEMBER the The member for finance and corporate services introduced the report.  It was highlighted that the peer team involved senior local government councillors and officers who reviewed key finance, performance and governance information.   The peer team considered five core components: local priorities and outcomes, organisation and place leadership, governance and culture, financial planning and management and capacity for improvement.  In addition, the peer team considered the council’s approach to risk, use of data and insight and transformation. 

It was highlighted that the Corporate Peer Challenge report contained the overall message (Appendix 1) that:

“Herefordshire was a good council, it was striving hard to improve further and it benefited from a strong sense of place, a maturing political culture and a growing confidence in its leadership.  The council has developed a respected identity among partners and is seen as a constructive and increasingly strategic player in the region. There is a clear recognition of the challenges ahead, particularly in relation to transformation, capacity, and financial sustainability, and the council is approaching these with determination and a willingness to learn. The peer team found a council that is self-aware, committed to improvement, and increasingly outward facing. There is a shared understanding of the importance of transformation, and while the journey is still at an early stage, the council is laying the groundwork for long-term change. The latest Ofsted monitoring visit confirms that children’s services are improving at pace, and performance in most other service areas is broadly in line with statistical neighbours. The council’s finances are currently in a good base position. There is a need to refresh the medium-term financial strategy (MTFS) and undertake more robust scenario planning to prepare for future uncertainties.”

The Corporate Peer Challenge report noted that Herefordshire was a rural county with demographic challenges such as an aging population, the council’s leadership (politically and managerially) was increasingly confident and respected, there was a level of political maturity and members working constructively across party lines and a strong emphasis on consensus building.  Partnership working was noted as a strength and the phosphate credit scheme was cited as an example of innovative, place-based leadership.  Also, partnerships with the voluntary and community sector were positive.  It was noted that governance was generally strong with clear structures and ongoing improvements in risk management.  It was also noted that audit and scrutiny had been strengthened.

However, it was raised that whilst performance management was embedded across the council, there was a need for better data integration and corporate-level insights to drive transformation.

It was highlighted that the council’s financial position was stable with a positive outturn in 2024-2025 and with a healthy level of reserves. There was recognition that future years’ financial settlements may be challenging, and the council was reviewing the Medium-Term Financial Strategy alongside scenario planning to test different assumptions. The team noted an ambitious capital programme with the need to keep management and capacity to deliver the programme under review. 

Lastly, it was noted that the council had traditionally operated a thin-client model with many services outsourced but that this was being rebalanced with investment in in-house capacity to support change and ensure more effective oversight. 

The conclusion noted that: “Herefordshire Council is a good council with a strong foundation and a clear ambition to improve. It has made significant progress in key areas, particularly children’s services, and is increasingly confident in its leadership and identity. The council is self-aware and understands the scale of the transformation required. With continued focus on capacity, data, and financial planning, it is well-placed to deliver on its ambitions and improve outcomes for its communities.”

The peer team identified five key recommendations, and it was proposed that the progress against these were monitored through the quarterly performance reports:

1.           Transformation,

2.           Data and insights,

3.           Medium term financial planning,

4.           Internal capacity,

5.           Working with partners to deliver. 

It was noted that the peer review team would follow up with a one-day review visit, provisionally agreed for week commencing 23 March 2026. 

It was highlighted that the council had already addressed several of the recommendations. Regarding recommendation one transformation, it was confirmed that a Chief Data and Information Officer (CDIO) had been recruited and had started work on aspects of the council’s transformation program. The same CDIO was also leading on recommendation 2, data and insights.  Lastly, regarding recommendation 3, it was confirmed that a review of the MTFS had been conducted, and an updated report had been provided. 

There were no comments from cabinet members. 

Group leaders gave the views of their groups.  It was acknowledged that it was a good report, and it was confirmed that the actions would be monitored. 

In response to group leaders, thanks were extended to the Local Government Association, colleagues who assisted in the Corporate Peer Challenge and participants who were interviewed. Thanks were also extended to all the staff, chief executive, cabinet, senior management team and corporate directors. 

Councillor Stoddart proposed the recommendations, and it was unanimously resolved that:

That:

a)    Cabinet receives the report and recommendations arising from the Local Government Association Corporate Peer Challenge held 23 - 26 June 2025; and

b)    Cabinet approves the council’s action plan in response to the recommendations for publication.