Opposition councillors call on Bristol mayor to ‘restore public confidence’ after Bristol Energy fiasco

Opposition councillors are calling on Bristol’s mayor to “restore public confidence” in the council’s oversight of its companies by quickly adopting the recommendations set out in a damning independent report.

It comes after the local authority poured around £36.5m into its failed energy firm, Bristol Energy, which lost nearly £50m before the council broke it up and sold it last year.

Bristol City Council still owns a number of other companies, including Bristol Waste, the fledgling home-building firm Goram Homes, and their parent parent company Bristol Holding Ltd.

A hard-hitting report from the council’s external auditors last month concluded the authority’s arrangements for making decisions about Bristol Holding and its subsidiaries were “inadequate” in 2019/20.

Auditors Grant Thornton were particularly critical of the council’s handling of Bristol Energy, saying the ruling Labour cabinet invested extra money in its last full financial year of trading based on information that “did not clearly state the risks” and was “out of date”.

It said the business plan was “unrealistic”, the audit committee should have had “closer involvement”, and the council kept some information private that did not need to be confidential creating concerns it is “not as open and transparent as it could be”.

The auditor made 12 recommendations to address these flaws and strengthen governance, openness and scrutiny in relation to the council’s companies.

Now the Liberal Democrat group, with the backing of the Conservatives, have submitted a motion calling on mayor Marvin Rees to “accept and adopt (in total and without delay)” the recommendations to “restore public confidence” and “protect the taxpayer”.

They are also requesting the establishment of a cross-party group whose members would have full access rights to “potentially exempt information”.

The council poured around £36.5m into its failed energy firm, Bristol Energy. Photo: Bristol Energy

Senior officers have already told members of the audit committee they are committed to adopting the recommendations and that the chair, vice-chair and an independent member of the committee will get “regular, periodic confidential briefings”.

The motion, due to be debated at an extraordinary full council meeting next week, notes “with alarm the numerous failings” in the council’s decision-making arrangements for the companies it owns and especially the “glaring deficiencies” in the oversight of Bristol Energy.

“These shortcomings inevitably raise continuing concerns over a lack of transparency and the ability or effectiveness of scrutiny to oversee executive/political decision-making for publicly-owned commercial companies”, the motion says.

“In order to restore public confidence, protect the taxpayer, and discharge the authority’s obligations to its employees in such enterprises, council calls on the mayor to accept and adopt (in total and without delay) the twelve recommendations contained in the report of our external auditors.

“Furthermore, a cross-party board or panel needs to be established as an adjunct to the audit committee and OSM (overview and scrutiny management board), the membership of which shall have full access rights to potentially exempt information.”

Opposition councillors are calling on Rees to “restore public confidence” following the saga. Photo: Bristol Energy

The motion will almost certainly encounter strong opposition from the Labour group.

But if it were to be adopted in full, which would require two Labour councillors to vote with the opposition, the cross-party group would meet within two weeks of being set up to examine an action plan from officers for adopting the auditor’s recommendations.

A progress report would be brought back to full council within three months.

Councillors are due to vote on the motion at an extraordinary full council meeting set to take place virtually at 5pm on Thursday, February 11.

Amanda Cameron is a local democracy reporter for Bristol.

Main photo: Bristol Energy

Read more: Top Bristol councillors to get confidential briefings to avoid another Bristol Energy fiasco