City council praised as financial challenges loom

A "well-run" council has been praised in a local government peer review, but still has urgent work to do to tackle a £32.5m funding gap.

City of Wolverhampton Council was reviewed by senior councillors and officers over four days in September.

The report noted the authority's strong track record and its impressive regeneration projects and said its passion for the city "shines through".

A series of recommendations were made for the future and an action plan will be considered by the council's scrutiny board on 8 January before it goes to full council in February.

The peer review report said: "The passion for Wolverhampton amongst the council's members and staff shines through, with the organisation 'proud to be Wolves' and a palpable sense of civic identity and ambition."

It said the council's senior officer and political leadership were highly praised and senior officers had played "a pivotal role" in the establishment and work of the West Midlands Combined Authority.

However, it said no council was immune from challenges in the current fiscal climate.

City of Wolverhampton Council had urgent work to do to identify savings to meet a projected funding gap of £32.5m by 2026-27.

The report continued: "Additionally, the council's own financial challenges sit alongside the £120m deficit the Black Country Integrated Care System must tackle concurrently."

The Black Country Integrated Care System is a committee including the NHS, councils and police and fire authorities, which works on improving care, health and wellbeing.

Wolverhampton was described as having a significant industrial heritage and the 24th most deprived area in the country.

Peer reviewers said: "The strong Wolverhampton identity, captured in the 'one pack' motto of its famous football team, is mirrored in the council's approach and passion for the city."

Papers submitted to the scrutiny board said the city council invited the Local Government Association to undertake the review in autumn 2024.

Key recommendations included detailing budget targets in relation to the £32.5m funding gap, communicating future council plans and setting out a strategy for the use of reserves.

The recommendations also included preparing the organisation and partners for "the more challenging financial environment across the Black Country Integrated Care System in the context of a £120m deficit".

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