An independent External Assurance Review by the Chartered Institute of Public Finance and Accountancy (CIPFA) has concluded that the council has made significant improvements to its financial management, governance and organisational culture since previous reviews in 2021.
The council was required to undertake the review after requesting Exceptional Financial Support (EFS), a form of financial flexibility for local authorities that are facing financial difficulties, from Government in December 2025. This allowed the council to fund areas of unexpected high cost through borrowing, thereby allowing us to protect our reserves balances.
Overall, the review recognises the substantial progress made by the council in strengthening financial oversight, improving governance arrangements and developing a clear and credible plan for long-term financial sustainability.
The report reads: “Peterborough City Council is demonstrating effective stewardship of its affairs and has in place credible and achievable plans to move towards financial sustainability and to reduce reliance on EFS over the period of its Medium Term Financial Strategy (MTFS). There remain risks but the MTFS outlook for the council seeks to increase financial resilience and place the council in a much more financially sustainable position.”
CIPFA found that the council has strengthened its finance function, improved audit and scrutiny arrangements, enhanced financial reporting and developed a more robust approach to managing risk. There is strong alignment between the Corporate Strategy, financial plans, transformation activity and performance management arrangements.
The report also recognises that challenges remain. These include rebuilding reserves to strengthen financial resilience, managing ongoing pressures within Children's Social Care and continuing to modernise governance arrangements.
Councillor Shabina Qayyum, Leader of Peterborough City Council, said: "This report provides independent recognition of the significant progress made by members and officers over recent years to strengthen the council's finances, governance and decision-making.
“We know there is still work to do, our reserve levels remain too low, we don’t yet have the financial resilience to absorb unexpected financial shocks, and demand pressures in Children's Social Care, particularly around high-cost placements, continue to pose a financial risk. However, it is encouraging that CIPFA has acknowledged the improvements we have delivered and the clear direction we have set for the future.
"We remain committed to delivering our Corporate Strategy, rebuilding financial resilience and ensuring we provide the best possible value for residents. The report's recommendations will help us continue that journey and we will carefully consider each one as part of our ongoing improvement programme."
The report concluded that the council has taken significant action to strengthen its financial management and governance since previous external reviews undertaken in 2021 which identified serious weakness in finance and governance.
CIPFA highlighted the council’s Chief Executive Matt Gladstone for praise for driving the improvements in governance, as well as the council’s Section 151 Officer Christine Marshall who they described as having made a clear impact on improving the financial robustness of the council.
The review identifies 22 recommendations to further strengthen financial resilience, governance and service delivery arrangements. Many of these areas are already being actively progressed through existing improvement plans.
Matthew Gladstone, Chief Executive, said: “I would like to pay tribute to councillors and staff who have worked tirelessly in the past five years, against a difficult backdrop, to achieve the giant steps forward which have been described by CIPFA. Our staff have supported the improvement agenda with a real enthusiasm to review and transform the services that we offer and at a political level there is strong cross working through the Financial Sustainability Working Group and the Cabinet Policy Forum, which was referenced by CIPFA.
“It is also pleasing to see that a key finding of this review is the clear and demonstrable link between the services that we provide and the way we operate and our Corporate Strategy.
“Like a lot of councils, our finances although improved remain limited to meet our growing population and the challenges that exist for our residents and our city. Our Corporate Strategy really is our guiding light for how we spend our time and money on a long-term plan and vision for a city which offers more and better opportunities for all.”
The council will now be developing an action plan to address the recommendations from CIPFA and continue its hard work to build a financially sustainable and well-governed organisation for the future.
The report can be read in full on the Ministry of Housing, Communities and Local Government's website.