Business & Finance
Renew commitment to high ethical standards, report on local financial governance reform argues
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Press release
Embargo date: from 00.01 a.m., Tuesday 3rd December 2024
Renew commitment to high ethical standards, report on local financial governance reform argues
English councils seeking to restore trust in how they spend council taxpayers’ money should recommit to the Nolan principles underpinning high standards in public life, a report published today by the think-tank Localis has advised.
In a new report entitled “Present Tense: renewing and reforming local financial governance towards long-term resilience and sustainability”, Localis acknowledges the severe challenges faced by councils since the abolition in 2010 of regulator the Audit Commission and straitened local finance settlements but argues improved governance will be essential to ensuring attempts by the new government to rebuild local public finances are effective.
Among principal recommendations aimed at councils, the report calls for a shift towards long-term financial planning in line with multi-year settlements anticipated in next spring’s Comprehensive Review, and for local authorities to create organisational cultures that embrace challenge and criticism and hold town hall leaders accountable.
This process would be achieved, the paper suggests, by:
- formalising checks and balances;
- giving statutory monitoring officers more support and protection to perform their duties;
- reviewing whistleblowing policies; and
- strengthening internal audit functions to identify emerging financial threats.
In their recommendations to central government, the report authors call for a national body or set of local bodies to oversee the local audit system by setting standards, managing contracts, maintaining quality of audit as well as overseeing the strategic functions of local authorities.
A further key recommendation is for central government to provide a framework for local government that establishes a clear definition of good governance and outlines the different roles and responsibilities of local government – effectively moving away from the current centralised approach to council financing and empowering local authorities to manage their finances strategically.
Other recommendations in the study include a call to give councils more resources to clear the backlog of audits and also to recruit and retain experienced governance officers by working with professional organisations.
Localis chief executive, Jonathan Werran, said: “In renewing governance, the task for local authorities – to focus on meeting their statutory obligations and pursuing innovative governance strategies without compromising their core functions – is extremely challenging.
“Many councils are already actively engaged in reform and organisational development to respond to the challenges we identified and many of the recommendations are drawn from this best practice.
“However, there is still work to be done in universalising a reformist mindset in the sector and ensuring that an ethos of public service, combined with long-term, strategic thinking, guides local decision-making and service provision everywhere in England.”
Localis senior researcher, Callin McLinden, said: “Local authorities continue to face unprecedented financial challenges, exacerbated by years of austerity and outdated funding models reliant on central government grants.
“Our report, Present Tense, reveals an alarming erosion of governance capacity, undermining councils’ ability to manage finances, oversee contracts, and plan effectively.
“It calls for urgent reform to create a more accountable, transport, and sustainable system of local government finance that empowers councils to deliver for their communities.
“Collaboration between the government and local authorities will prove absolutely vital to rebuilding trust and ensuring resilient local finances in the long-term.”
Guy Clifton, Local Government Value for Money Director, Grant Thornton UK LLP, said: “As auditors of local government we recognise the diagnoses set out in this report.
“Whilst high profile governance failures at some councils should not reflect on the sector as a whole, these failures are a symptom of the need to renew the system of governance.
“All councils continue to operate in an environment of increasing complexity, uncertainty and volatility.
“The report provides an important contribution to the changes needed to improve decision making, scrutiny and the stewardship of public finances nationally.”
Simon Christian, Local Government Consulting Director, Grant Thornton UK LLP, said: “Now is a time for renewal in governance in the local government sector.
“The systems of oversight and scrutiny need to be improved both nationally and within local councils as, if the financial challenges ahead for the sector are to be met, robust and effective governance is essential.”
ENDS
Press enquiries:
Nuala Cudmore, Communications Manager, Localis
(Mobile) 07510 691149 / (Email) [email protected]
Notes to Editors:
- An advance copy of the report is available for download here:
Localis is an independent think-tank dedicated to issues related to politics, public service reform and localism. We carry out innovative research, hold events and facilitate an ever-growing network of members to stimulate and challenge the current orthodoxy of the governance of the UK.
‘X’ @Localis
Bluesky @localis.bsky.social
About Grant Thornton UK LLP
Grant Thornton is one of the world’s leading organisations of independent assurance, tax and advisory firms. We are an adviser that delivers technical expertise and a personal, proactive and agile service that goes beyond. The UK member firm is part of a global network that employs 62,000 people in over 140 countries. The UK Grant Thornton member firm is led by over 200 partners and employs over 5,500 of the profession’s brightest minds. We are a business adviser that celebrates fresh thinking and diverse perspectives to bring you proactive insights and a service you can trust.
Grant Thornton UK LLP has been working with local authorities and other public sector clients for over 30 years. We have over 500 public sector specialists and over 200 local government clients in the UK. We are the leading provider of external audit services to local government. Our blend of consultancy, advisory and assurance expertise, including our deep analytical capabilities, means that we are a leading advisor to councils, supporting them in managing their current and future challenges and opportunities.
Find out more at www.grantthornton.co.uk
@GrantThorntonUK
Key report recommendations
Recommendations to local government
In renewing governance, the task for local authorities – to focus on meeting their statutory obligations and pursuing innovative governance strategies without compromising their core functions – is extremely challenging. It must be acknowledged that the stripping out of funding has played a major role in the baleful proliferation of governance issues, and that ultimately local government must reckon with the cost of providing vital local services whilst also engaging in placemaking. However, increased funding alone will not solve all of the challenges facing local government. Improved governance is essential to ensuring that additional funds are used wisely and effectively.
Across the sector, many councils are already actively engaged in reform and organisational development to respond to the many challenges identified in this report. Many of the recommendations below are drawn from this best practice. However, there is still work to be done in universalising a reformist mindset across the sector, and ensuring that the ethos of public service combined with long-term, strategic thinking guides local decision-making and service provision everywhere in England.
Some specific recommendations for local government are listed below:
- Councils should seek to reinforce ethical leadership and transparency by embedding the Nolan principles of standards in public life as a matter of organisational code, seeking to proliferate accountability and integrity as a matter of day-to-day practice.
- Taking advantage of the multi-year settlement, councils should begin to adopt a paradigm shift towards long-term financial planning, including replenishing and maintaining adequate reserves for protection against economic shocks and investing in sustainable, resilience-focused projects.
- Councils should create an organisational culture that embraces challenge and criticism, valuing diverse perspectives and holding leaders accountable. This could be achieved by formalising checks and balances, establishing channels for open communication, and encouraging a culture of learning from past mistakes.
- As part of this, across the sector, statutory monitoring officers need to be given more support and protection to effectively perform their duties. These officers must be given the necessary resources and authority to challenge potentially risky financial decisions without fearing repercussions.
- Authorities should review whistleblowing policies to ensure that they reinforce a culture that welcomes challenge and accountability, ensuring governance structures remain transparent and robust.
- Internal audit functions should be strengthened. Local authorities need to provide internal audit departments with sufficient resources and skilled professionals who can assess and mitigate critical financial risks. Internal audit teams should proactively identify emerging threats and have the authority to challenge senior management and executives.
- To further strengthen internal reflection processes, councils should review public interest reports and auditor annual reports to identify common pitfalls and best practices. They should also implement recommendations from these reports and conduct post-implementation reviews to ensure that lessons learned are embedded into decision-making processes.
- Cross-sectoral efforts should be made to attract and retain experienced officers. Local authorities are facing difficulties in attracting and retaining qualified staff, which further undermines their ability to ensure good governance. Pooling funds for investment in recruitment strategies that prioritise integrity, competence, and cultural fit is crucial.
- Councils must work to improve transparency and public engagement. Residents need to be able to understand and participate in decision-making processes. Local authorities can foster transparency by making financial information easily accessible and communicating clearly with the public.
- Local authorities must take it upon themselves to further develop accessible financial reporting systems with plain language summaries, visual aids, and digital platforms to enhance public understanding and engagement with financial decision-making
- Councils and relevant partnerships should consider developing digital and public-friendly communication and information tools to simplify reporting on budgets, planning, and service delivery, further encouraging public participation and understanding
Recommendations to central government
The government should look to shift from a centralised, adversarial approach to overseeing local government to a collaborative model, empowering local authorities to make financial decisions based on local needs and priorities. Furthermore, central government should actively support and respect local decision-making on certain matters as a principle of subsidiarity, recognising the expertise and great potential of local authorities to manage their finances and services.
It is also important that government implements more stable and long-term policies at the level of place. The provision of multi-year funding settlements is a positive start in this direction but the real test will be in the formulation and application of the forthcoming reforms to devolution and economic strategy. Central government also needs to improve communication with local authorities and work with sector-led, intermediary professional and stakeholder bodies to provide clearer guidance on its priorities.
Some specific policy recommendations for central government are listed below:
- The government should provide a framework for local government that establishes a clear definition of good governance and outlines the different roles and responsibilities of local government. The framework should move away from the current centralized approach to local government financing and empower local authorities to manage their finances and think strategically.
- The new multi-year settlement and accompanying review of the funding formula provide an opportunity for government to better align revenue support with the statutory duties of local authorities. The new funding formula should be based on demographic factors directly linked to service demand and geared towards funding preventative measures and long-term resilience projects.
- To ensure robust government, government should reinstate previously eroded legal protections for statutory officers so that they can challenge potentially risky financial decisions without fear of repercussions.
- To help bolster the governance and scrutiny workforce across councils, government should support recruitment efforts to attract and retain experienced officers. This could involve providing funding or working with professional organisations to develop new, or scale up existing, programmes.
- Policies like statutory deadlines for audit must be matched with investment in the audit sector, to help clear the backlog of audits and improve their quality.
- The government should commit to reviewing and renewing the standards regime for local authorities, potentially reinstating a national code as was in operation from 2000 to 2012.
- As a way of combatting governance erosion, government should consider either empowering an existing or establishing a new national body, or a set of local bodies, to oversee the local government audit system.
This body could be responsible for setting standards, managing contracts, and ensuring the quality of audit, as well as overseeing the strategic functions of the local state.
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Business & Finance
FBI Identifies North Korea as Culprit in $6.3 Billion Binance Crypto Hack
FBI attributes $6.3B Binance crypto hack to North Korea, raising security concerns. Binance covers 90% of losses.
In a striking attribution of cyber malfeasance, the Federal Bureau of Investigation has named North Korea as the perpetrator behind a colossal $6.3 billion hack on Binance, one of the world’s largest cryptocurrency exchanges. This revelation underscores persistent cybersecurity vulnerabilities and intensifies geopolitical tensions already fraught with complexity [The Guardian, November 2026].
The breach, now recognized as the largest of its kind, has sent shockwaves through the digital asset community, raising urgent questions about the robustness of current security protocols within the crypto industry [Al Jazeera, November 2026]. Despite the significant financial blow, Binance has demonstrated resilience by covering a substantial 90% of the losses, reflecting its commitment to maintaining user trust and stability [The Guardian, November 2026].
Binance’s response to the hack has been proactive, involving collaboration with international law enforcement agencies to pursue recovery of the stolen assets. A spokesperson from the exchange affirmed, “We are working closely with law enforcement to recover the funds,” indicating a strategic approach to mitigate the consequences of this unprecedented breach [The Guardian, November 2026].
The scale of the hack, valued at $6.3 billion, places it squarely in the spotlight of global financial and security discussions. It serves as a stark reminder of the vulnerabilities inherent in digital finance systems, particularly as they become more entwined with global economic infrastructures [Al Jazeera, November 2026].
North Korea’s involvement in such a high-profile cybercrime reflects broader geopolitical dynamics, where state-sponsored hacking has become a tool for economic gain and political leverage. This attribution by the FBI further complicates diplomatic relations and underscores the need for coordinated international responses to cyber threats [The Guardian, November 2026].
The incident has not only affected Binance but has also sent ripples across the broader cryptocurrency market, prompting investors and exchanges to reassess their security measures. The hack’s magnitude highlights the urgent need for enhanced protective measures and industry-wide collaboration to fortify digital asset exchanges against future threats [Al Jazeera, November 2026].
In the wake of this cyber assault, Binance’s robust response and coverage of losses may set a precedent for how exchanges handle such adversities in the future. It also emphasizes the critical role of transparency and accountability in maintaining user confidence and market integrity [The Guardian, November 2026].
As the situation unfolds, the interplay between cybersecurity and international politics will likely intensify, with potential repercussions for regulatory frameworks governing digital assets. The hacking incident serves as a catalyst for ongoing debates about the balance between innovation and security in the realm of cryptocurrency [Al Jazeera, November 2026].
Looking forward, the focus will remain on how Binance and other cryptocurrency platforms adapt to these evolving threats. Their ability to enhance security protocols and foster international cooperation will be crucial in defining the future landscape of digital finance. The world will closely monitor these developments, particularly as they relate to North Korea’s cyber capabilities and intentions [The Guardian, November 2026].
Business & Finance
Naboo Expands with Acquisition of UK Events Platform Pro-ven
Naboo has acquired UK M&E spend specialist pro-ven, which becomes Naboo UK, keeping all 20 staff and its founder.
Naboo, the Paris-based meetings and events (M&E) spend management platform, announced on 27 October 2026 that it has acquired pro-ven, a UK specialist in venue sourcing and event procurement, for an undisclosed sum. The companies say the combination creates the world’s largest pure-play provider of M&E spend management and venue sourcing.
Founded in 2005, pro-ven helps corporate and association clients manage meetings and events spending through venue and supplier sourcing, contract negotiation, approval workflows, invoicing and payment management. It generates around €30 million in annual transaction value and brings enterprise clients including Unilever, Virgin Media and Sony. Following the deal, Naboo says the combined business will manage around $300 million (€268 million) of meetings and events spend.
Under the terms of the deal, pro-ven’s Hertfordshire office becomes Naboo’s UK headquarters and the business will operate as Naboo UK. All 20 pro-ven employees are being retained, and founder and managing director Julian Laxon will stay on to help grow Naboo’s UK presence. Existing pro-ven clients keep the same account teams and commercial arrangements, while gaining access to Naboo’s AI-driven technology platform and international network.
Naboo says the acquisition was financed equally through equity and borrowing. It follows the company’s $70 million (€58.7 million) Series B round in February 2026, led by Lightspeed Venture Partners with participation from existing investors Notion Capital, ISAI and Ternel.
The UK is not a new market for Naboo, which has operated there since 2024. CEO and co-founder Maxime Eduardo said the deal is primarily about accelerating growth in what he called a huge market for the company and adding enterprise customers. “Together with pro-ven, that is the leader we are building,” he said.
The acquisition caps a busy period for Naboo, which recently unveiled a new brand identity and opened its first Asia-Pacific office in Singapore, following its expansion into North America with offices in Montreal and New York.
Sources: Business Travel News; EU-Startups; CIT World; The Business Travel Magazine.
Business & Finance
How AI is Transforming Small Businesses: Success Stories
This article explores the transformative impact of AI on small enterprises, highlighting specific case studies of businesses that have successfully integrated AI technologies to enhance efficiency and competitiveness.
In September 2026, the Financial Times reported a significant surge in the adoption of AI technologies by small enterprises, driven by the promise of enhanced efficiency and reduced operational costs. Among the many businesses venturing into this digital frontier, a few stand out as exemplary cases, demonstrating the transformative power of AI when strategically implemented.
Take, for instance, GreenLeaf Grocers, a small organic food retailer based in Brighton. Faced with the challenges of scaling operations and managing inventory efficiently, GreenLeaf turned to AI-driven inventory management systems. By analyzing customer purchasing patterns and forecasting demand, the system enabled the grocer to optimize stock levels, reducing waste by 30% within the first year. The owner, Sarah Jenkins, noted, “AI has not only streamlined our operations but has also allowed us to focus more on customer service and community engagement.” This case underscores the potential of AI to reshape retail operations, offering insights into customer behavior that were previously inaccessible.
Another compelling story is that of TechFixers, a family-run electronics repair shop in Manchester. Confronted with increasing competition and the need to differentiate their services, the owners implemented an AI-powered diagnostic tool. This technology rapidly identifies device issues, providing technicians with precise solutions. As a result, TechFixers reduced average repair times by 40%, significantly boosting customer satisfaction and expanding their clientele. The owner, Mark Thompson, attributes their competitive edge to AI, stating, “Integrating AI into our diagnostic process has been a game-changer, allowing us to offer quicker, more reliable repairs.”
In the realm of financial services, FinServe, a small accounting firm in London, illustrates the impact of AI on service delivery. By employing AI-based analytics tools, FinServe offers clients real-time financial insights and predictive forecasting. This capability has attracted a new segment of tech-savvy clients seeking proactive financial management. The firm’s director, Lucy Patel, emphasized the strategic advantage gained, “AI has empowered us to provide a level of service that was previously the domain of larger firms. We’re now able to deliver insights and strategic advice that truly add value for our clients.”
These cases highlight not only the successful application of AI in various industries but also the diverse ways in which small enterprises can leverage technology to overcome specific challenges. While the potential benefits of AI are substantial, the journey is not without its hurdles. Businesses must navigate the complexities of data integration, system compatibility, and the initial investment costs. However, for those willing to embrace the change, the rewards can be substantial.
As AI technology continues to evolve, its role in small business operations is likely to expand, offering new opportunities for innovation and growth. The experiences of GreenLeaf Grocers, TechFixers, and FinServe serve as a testament to the transformative power of AI, providing a roadmap for other small enterprises eager to harness this technology.
Looking ahead, the integration of AI into small business operations is set to become even more pervasive. As technology advances and becomes more accessible, businesses of all sizes will find new ways to leverage AI for competitive advantage, creating a dynamic and constantly evolving landscape.
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