Audit Commission

The sale of land and buildings by Uttoxeter Town Council may be unlawful according to a report published today by the Audit Commission. The public interest report (attached) from the external auditor investigates the sale in 2008/09 of land next to Uttoxeter's Town Hall.

The report finds that:

• The Council did not do enough to market the land.
• There was at least one higher potential offer that was not pursued by the Council.
• The Council did not take sufficient legal advice, and it did not demonstrate how it properly considered and acted on what advice it did receive.

The report concludes that the way in which the Council reached these decisions is symptomatic of the poor underlying governance framework within the Council. It raises concerns about the clarity of roles of councillors, the clerk and other staff; the clarity of the terms of reference for committees and subcommittees; the lateness of circulating agendas and informative background papers to councillors; and about how open-minded the decision-making has been.

External auditor and report author Jackie Bellard says in the report that:

'I consider the decision to sell the land to be so poorly supported that the sale itself may be unlawful. I do not believe the Council took into account all the necessary information when reaching its decision and in my view such a decision could be found to be in breach of the 'reasonableness' test which underpins local government law.

'The question therefore arises about whether I should seek a declaration from the court that the sale of the Town Hall land was contrary to law. I have discretion in relation to whether I seek such a declaration. In this case I have decided not to apply to the courts, on the grounds that:

• the cost of taking audit action would be disproportionate to the sums of money involved;
• seeking a declaration will have little practical effect in relation to the sale of the land; and
• the best interests of the taxpayers are unlikely to be served by such action.'

Notes to Editors

1. No further public statement will be made by the external auditor before the Council has had an opportunity to discuss the report at a public meeting.
2. The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone.
3. Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers.
4. On 13 August 2010 the Secretary of State for Communities and Local Government announced that he plans to disband the Audit Commission. His intention is to have new arrangements in place for auditing England's public bodies by 2012/13.
5. Appointed external auditors act separately from the Commission. In meeting their statutory responsibilities they are required to exercise their professional judgement independently of both the Commission and the audited body. Auditors may report aspects of their work widely to the public and other key stakeholders.

For further information please contact: Eric Ludlow, Communications Manager (Central) Tel: 0844 798 4183.