Report finds ‘significant weaknesses’ in how Bury council manages its finances

A highly-critical report has identified ‘significant weaknesses’ in Bury council’s ‘value for money’. The town hall’s external auditors have produced a value for money’ report which was put before a special meeting of the audit committee last week.

It states that for the period 2021 to 2023 ‘actual significant weaknesses’ were identified in all categories looked at. Conservative opposition leader Coun Russell Bernstein said the report is a ‘damning indictment’ of the Labour -run authority and the reputational damage the auditors have identified ‘needs addressing and owning as a number one priority’.

The report by auditors Mazars looked into whether the council has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources. The report said there were ‘actual significant weaknesses’ in the categories financial sustainability, governance and improving economy, efficiency and effectiveness.

In the summer of 2023, Bury council declared itself to be in a ‘state of financial distress’ and established a voluntary an improvement panel to review all its financial systems and processes. The report said that the 2022/23 accounts statement showed a declining financial position compared to prior years with the cash balance decreasing by £40.5m to an overdraft position of £5.7m.

Borrowing levels had increased by £23m when comparing the position in 2023 to 2022. The report said the 2021/22, 2022/23 and 2023/24 approved budgets all included significant use of reserves to balance the budget and total general fund reserves had fallen by £58.1m from 2021 to 2024.

The report reads: “Our overall conclusion is that there is a significant weaknesses in the council’s arrangements to deliver financial