LGA Corporate Peer Challenge - Progress Review: Luton Borough Council

The council undertook an LGA Corporate Peer Challenge (CPC) during 12 – 15 March 2024 and promptly published the full report with an action plan.

The Progress Review is an integral part of the Corporate Peer Challenge process. Taking place approximately ten months after the CPC, it is designed to provide space for the council’s senior leadership to:

• Receive feedback from peers on the early progress made by the council against the CPC recommendations and the council’s RAG rated CPC action plan.
• Consider peer’s reflections on any new opportunities or challenges that may have arisen since the peer team were ‘on-site’ including any further support needs.
• Discuss any early impact or learning from the progress made to date.

The LGA would like to thank Luton Borough Council for their commitment to sector led improvement. This Progress Review was the next step in an ongoing, open and close relationship that the council has with LGA sector support.

The Progress Review at Luton Borough Council took place on 22^nd January 2025. 

The Progress Review focussed on each of the recommendations from the Corporate Peer Challenge, under the following theme headings:

• Luton 2040
• Member Development
• Finance and Transformation
• Place

For this Progress Review, the following members of the original CPC team were involved:

• Ian Thomas, Chief Executive, The City of London Corporation
• Councillor Grace Williams, Leader, London Borough of Waltham Forest
• Alison Parker, Director of Finance (S.151), Derby City Council
• Rebecca Purnell, Assistant Chief Executive, West Northamptonshire
• Chris Childs, Deputy Principal Long Road Sixth Form, Cambridgeshire
• James Mehmed, Peer Challenge Manager, Local Government Association

Out of the CPC’s ten recommendations, the council’s RAG rated action plan reports that 80 per cent of actions are completed / are progressed (rated green) and 20 per cent are rated amber and continue to be work-in-progress.

Progress Review Context – Summary following the March 2024 Corporate Peer Challenge

Luton Borough Council (LBC) has an ambitious vision ‘Luton 2040’ – a town where everyone can thrive, and no one has to live in poverty. The peer team identified LBC as trail blazing and the Leader, the Executive, Chief Executive, Corporate Leadership Team (CLT), cross-party councillors, and all council staff remain fully committed and focused on improving outcomes for the diverse community of Luton.

The council in their opening scene setting session thanked the peer team for the conversations, insights and recommendations identified during the March 2024 corporate peer challenge, which has shaped and informed the council’s system-focused work over the last nine months.

The eradication of poverty in the town remains the council’s core mission. The council shared with the peer team this year’s numbers of people living in destitution, this has dropped from 12.1 per cent to 9.9 per cent of households in Luton, a positive change in circumstances for circa 5000 residents and continuing to be on a downward trend since the pandemic.

Since the peer team were on-site, the council has worked hard to ensure the ambitious vision has clarity over the shorter and longer-term.

LBC has made significant strides over the past nine months towards achieving the Luton 2040 vision, guided by recommendations received earlier in the year.

Despite economic challenges, including the announcement of Vauxhall's closure, Luton has demonstrated resilience, achieving exceptional job and business growth, rising average wages, and improved education outcomes for disadvantaged youth. The town is a leader in job creation (ranked first nationally from 2010–2022) and business growth (ranked second in 2022). Progress continues on major town centre transformation and environmental goals, with litter halving since 2021 and advancements towards Net Zero.

Key areas of progress include:

• Economic Growth: A new head of economic growth has driven momentum in developing a productive, inclusive, and resilient local economy.
• Housing: Leadership changes and reallocation of resources have led to 300 fewer people in temporary accommodation compared to the previous year.
• Governance: Strengthened executive structures and a newly secured framework and roadmap clarify goals, ensuring accountability and tracking progress.
• Transformation Programme: Key elements of financial transformation have moved in-house, providing a sustainable foundation for achieving necessary savings.

Challenges remain in addressing large, complex issues like housing and town centre safety. While progress towards recommendations has been made, full delivery in those areas will take more time. Luton continues to excel, with highlights such as hosting Coldplay in Stockwood Park (BBC Radio 1 Big Weekend), further boosting civic pride and demonstrating its ambitious trajectory towards Luton 2040.

The council should continue to evolve governance arrangements and the culture to reflect the Luton 2040 vision.

Luton 2040

Incorporating corporate peer challenge recommendations 3 & 4.

Recommendation 3 - To establish a comprehensive data driven roadmap and delivery plan under the five pillars of Luton 2040. To be underpinned an outcomes framework that charts progress over one, three and five years.

Recommendation 4 - To ensure that all system partners deliver on their high-level commitments that greater structure is provided from the council to partners that translate their pledges into demonstrable actions over the next one, three and five years.

There has been strong progress over the past nine months with greater strategic alignment across the organisation towards reaching the 2040 vision. Through the transformation and the people strategy the council are developing the necessary capabilities, coupled with organisational trust and solidarity to deliver this evidence and data led approach. It was clear that the vision is becoming more integrated into the living values of the organisation and within the people strategy it is focused on engaging more non-networked members in the vision and how they contribute towards it.

The 2040 data outcomes are now integrated at service level planning and the planned reporting mechanisms are robust with the vision being a key thread running across the council. It was clear from the review sessions that housing and being a child friendly town are two key factors that underpin the success of the vision in eradication of poverty from Luton by 2040 and this will drive the underlying data collected.

The current strategy is to engage the community, through the focus on six key missions; these missions will include the creation of green corridors and keeping the pound in Luton, the missions will demonstrate the 2040 vision having a direct impact on the community, improving community visibility and buy-in towards the vision. Over the next 12 months, it will be essential to test the robustness of progress data and the outcomes framework and to access how this is informing decision making throughout the organisation. This is key to creating a sustainable model to deliver the roadmap and delivery plan.

The 2040 report offers great snapshots of the pledges from key local stakeholders and engagement to support the 2040 vision and the development of tools for real time tracking of data and impact. The development of the ‘Luton 2040 Partnership Group’ that meets for the first time in March 2025, will be a key driver of the pledges and the 2040 vision. The Luton 2040 partners meeting attended by peers showcased key organisations that have pledged to support the vision, and provided feedback how the 2040 framework was an exceptional tool to help them plan. The three organisations at the meeting were, University of Bedfordshire, BLCF Bedford & Luton Community foundation and the ICB for Luton, MK, Central Beds and Bedfordshire, all have integrated the Luton 2040 vision in their own organisational planning. The joined-up approach has already allowed organisations that have pledged to deliver demonstrable actions that support the Luton 2040 vision. The influence of these key partners will help leverage other organisations and make the pledges more purposeful. The organisations felt working with the council, was a collegiate experience and the February 2025, Luton 2040 conference was cited as a great example of this collegiate work. Over the next 12 months measuring the impact of the pledges will be key in supporting the outcomes and six missions.

Member Development

Incorporating corporate peer challenge recommendations 1 & 2

Recommendation 1 - Reset of the executive decision-making function – to include regular informal meetings of the executive informed by a forward plan and regular meetings between CLT and executive, to facilitate a more coordinated response to strategic challenges.

Recommendation 2 - To enhance the current member development programme so the executive team can effectively fulfil their responsibilities and lead on culture change.

Luton benefits from a highly experienced and committed leader, supported by a strong chief executive team and robust governance framework. The leader’s proactive approach to devolution proposals demonstrates a clear focus on securing the best outcomes for Luton and presents an opportunity to strengthen relationships with senior government.

Positive progress has been made in implementing key recommendations, with notable changes to decision-making processes and enhanced support for the executive. The council has recruited two new executive members for children’s and adult social care portfolios, providing them with external mentoring and training. Executive portfolios have been realigned to address the corporate peer challenge findings, such as separating housing strategy and operations.

Quarterly joint executive and CLT meetings have replaced bi-annual ones, fostering greater collaboration on strategic issues like budget management, the transformation programme, and town centre developments. The greater emphasis on strategic conversations has created valuable opportunities to share information, plan collectively, and address shared challenges. Additional planning sessions following formal executive meetings have also strengthened forward planning and budget oversight. Consideration should be given to enhancing member involvement in the budget-setting process, for example through targeted training to improve understanding and engagement.

Executive members are more engaged in shaping budget direction and monitoring finances, fostering collective ownership. Cross-portfolio collaboration is emerging, enabling progress on significant challenges.

The executive team has made progress in leading culture change, including member visits to Wigan Council to learn best practices and examine the approach to culture change; member involvement in these exchanges is proving to be valuable. Members have also adopted a co-ownership approach to reports presented at Labour Policy Group, improving collaboration between portfolio holders and lead officers. Luton's unique decision-making approach fosters consensus, ensures no surprises, and aligns with a strong commitment to pre-scrutiny of decisions. This process is well-managed and complements decision-making flows. However, there is a need to create more space to strengthen executive leadership further.

The council retained its ‘LGA Charter Plus’ accreditation for member development in 2024, demonstrating a continued commitment to councillor training and leadership development. This reflects the strong collaboration between officers and members, evidenced by interviews with key stakeholders and support from partners.

The creation of a cross-party member development steering group has shaped a flexible and accessible training programme, which is highly appreciated by members. A refreshed training programme, with a focus on executive training, will launch in April 2025 under the ‘Member Development Steering Group’s’ action plan. The development programme should align with the Luton 2040 vision and transformation agenda, ensuring essential skills and knowledge are being nurtured.

This progress underscores the council’s dedication to developing effective leadership, improving collaboration, and achieving its 2040 vision.

The executive can further develop through strengthening the ways of working within the top team by prioritising sustainable leadership practices, such as workload management, prioritisation, and modelling these behaviours. The executive should prioritise team-building activities to further focus and equip it to achieve its Luton 2040 vision, with transformative leadership at its heart, whilst further clarifying executive roles within the policy group decision-making framework.

Peers shared with the council an approach to address challenges related to temporary accommodation and asylum by considering a ‘Borough of Sanctuary’ framework. This approach could foster strength, inclusivity, and cohesion while contributing to solutions in town centres. Opportunities for learning between effective models for temporary accommodation and asylum support should also be explored.

By addressing these areas, Luton can build on its strengths and further position itself as a leader in governance, strategic development, and community resilience.

Finance & Transformation

Incorporating corporate peer challenge recommendations 6, 7 & 8.

Recommendation 6 - To develop a culture that enables corporate ownership of financial management – to include investing to achieve an effective business partnering model to improve financial management and the sharing of responsibility and accountability across the council.

Recommendation 7 - To rapidly increase the capacity to deliver the transformation and deficit recovery programmes, to help assure financial sustainability over the medium term.

Recommendation 8 - To prioritise strategic activity in order to address capacity issues across the council. Continue to progress the implementation of the people strategy at pace, with incisive focus on this, as well as capability, culture and EDI.

A comprehensive independent external review of financial management is underway, led by CIPFA. The review, sponsored by the chief executive and overseen by a programme board is in advanced stages of document review and stakeholder interviews. Peers suggested considering when the time is right, extending the board membership (which is currently corporate focussed) to include representation from service departments to understand the impact on services of changes to procedures and their input will be invaluable in terms of considering the cultural, accountability and management of finance across the council.

The final report is expected early in the new year. The review will examine culture, behaviour, systems, and processes. The CIPFA review demonstrates the desire to make changes and willingness to improve which peers felt should be applauded.

Peers highlighted to the council the requirement to be careful about the impact on capacity and moral of the finance function; there is already a public interest report and a huge back log of audit work relating to the statement of accounts that will require a response to and will have resourcing implications.

The finance business partnering model is providing a wealth of strength and experience and the general approach is effective and well regarded by services. Capacity is sufficient to ensure that there are leads for all council services. There is a heavy dependence on the team for understanding trends, demands and forecasts and work should be continued to embrace the culture of devolved financial management and accountability.

Peers were pleased to hear that monthly director meetings have been established to review the financial forecasting position; seize the opportunity to use these to consider collective solutions to financial challenges.

The council’s transformation programme is fully underway, aiming to deliver over £5m in budget savings this year and contributing towards the £13m savings target and deficit recovery plans. All projects have been prioritised using the council’s segmentation matrix, with delivery teams reporting to the project management office (PMO) and progress reviewed monthly by the transformation board.

Peers were pleased to hear of recent developments including the appointment of a new head of transformation (December 2024) and the establishment of a corporate PMO, transitioning from external human engine resources to Luton-employed staff. Additional roles have been created to lead priority programmes, with resource plans and a shared resource planner ensuring efficient allocation. A new PMO framework is helping to standardises project templates and reporting, this was seen as positive.

Financial sustainability is a challenge, and peers recognise this is an issue for the whole sector and not unique to LBC. Peers were pleased to see that the council has benefited from the newly created ‘Recovery Grant’ of circa £6m and set a balanced budget for 2025/26, although this is only deliverable through an additional £11.7m of savings. The council should focus on ensuring that full delivery plans are completed to ensure the deliverability of those savings.

The in-year overspend is a concern to the council with significant overspends of circa £14m in adult social care services. Whilst recognising that demand in this area is a huge pressure and the ability to respond to regulatory inspections requires investment to reduce things like waiting lists the council should perhaps consider setting an adult social care MTFP project group to fully understand the drivers for spend and the trajectories. Peers reflected that adult social care is complex, the group should include colleagues from across the council, finance, performance, service, commissioning and IT.

Future transformation phases will target additional savings through commissioning, procurement, workforce reviews, automation (including AI and RPA), and improved debt/income collection. Recruitment has been successful, with strong appointments and internal career development opportunities, ensuring projects are on track to deliver both financial and non-financial benefits.

In terms of transformation, peers were pleased to see huge progress in this area with the creation of a new head of service, additional change managers and a new PMO. The bringing in house of the IT services and the centralisation of service IT functions increases capacity and ensures a strategic focus on the opportunities available to the council.

Peers stressed in the feedback session the requirement to ‘do the boring well’, robust business cases and benefits realisation tracking are essential to continuing the journey of success.

The linkages of the people’s strategy across the transformation agenda are strong and well embed and there has been some great progress made across all services with creative and innovate solutions for improved face-to-face contact for harder to reach front line services.

Place

Incorporating corporate peer challenge recommendations 5, 9 & 10.

Recommendation 5 - The development of a corporately led new and ambitious strategic approach to the delivery of affordable housing. This should be underpinned by a robust delivery plan, utlising innovative solutions, within a year. This must become a corporate and partnership priority, informed by best practice.

Recommendation 9 - To prepare the ground for the successful execution of the town centre master plan, refocus the multi-agency town centre operational task force to actively address and alleviate the overt challenges evident in the town centre.

Recommendation 10 - As part of the emergent work to develop an economic development strategy the council should use research, analysis and engagement, (at a local regional and sub-regional level), to establish a clear understanding of economic growth opportunities for the borough’s diverse population. To then secure alignment with employment pathways.

Housing pressures and homelessness challenges in Luton remain significant, exacerbated by high construction and borrowing costs, which affect public and private housing delivery. The government’s ambitious national targets for housing and affordable housing delivery further highlight the urgency for LBC to address these issues.

Following the corporate peer challenge, the council implemented several key organisational changes to improve housing delivery in Luton; executive portfolios were reorganised in May 2024 to consolidate all housing delivery under a single portfolio, enabling a focused approach. A staffing restructure was completed in November 2024, integrating housing delivery, asset management, and development functions into a unified property and housing delivery directorate.

Peers were informed of the establishment of a member/officer board and a member working group to focus on housing delivery and partnership models; work has included the identification of grey belt land for potential housing development and the mobilisation of a £10.5m budget and securing an additional £20m for acquiring temporary accommodation, aimed at reducing reliance on hotels and nightly-paid accommodation.

LBC has made progress on stalled Foxhall Homes projects, with new contractors appointed to deliver 80 homes, one already on site and the other set to begin in February 2025. The ‘Stage’ development has achieved planning permission, executive approval, and substantial groundworks completion, with the main build phase awaiting building safety regulator approvals.

Peers acknowledge these efforts reflect significant strides towards addressing Luton’s housing challenges and enhancing housing delivery. Although progress is being made, peers heard from some members that the council is in transition with working arrangements, however the approach to new development is starting to be transformed. There is now a stronger ambition by members to bring forward solutions at pace and scale, with a view that ‘nothing should be off the table’ with various options being reviewed. Peers shared their reflections concerning the urgent housing need and the issues with scarcity of assets and land, to further consider building upwards despite previous opposition by members.

Peers were informed of the efforts being made to enhance land acquisition opportunities for the council or through partnership arrangements, with strengthened relationships with local registered providers fostering open discussions on delivery options. The restructured portfolio and staffing arrangements have stabilised, enabling a renewed focus on housing delivery.

Exploration of a delivery partnership for affordable housing is underway to secure additional funding, land, and expertise. This involves legal advice, soft market testing, and a dedicated member/officer working group meeting weekly to evaluate options, with findings to be presented to the policy group.

Learning from best practice in housing partnerships elsewhere continues, supported by the council’s success in securing £5m in capital funding from the airport dividend for 2025/26, with ongoing efforts to identify land for acquisition.

The peer team were made aware of some current issues relating to the performance of housing management. The service was described as being structured appropriately, with awareness of service complaints and the support required to improve the service. The council reflected how the service needs to work more closely with residents and review processes; an improvement plan will be developed by the middle of February 2025. The peer team discussed with members and officers should there be any doubt in the council’s compliance with housing regulations to self -refer or seek to have an informal discussion with the ‘Regulator of Social Housing’.

In March 2024, a new head of economic growth and strategic regeneration was appointed, focusing on leading the town centre delivery plan. This plan, formally agreed in early 2024 with the town centre strategic board, serves as a roadmap for the town centre's development and aligns with the town centre masterplan.

Peers were made aware of key achievements including major public realm improvements completed in spring and summer, guided by a new public realm design guide. Progress includes three major sites are under development: hosting Radio 1’s Big Weekend (bringing an economic impact of £7 million), enhancing Luton's image, and attracting significant visitor interest. The council is engaged in collaborative work with Luton Town Football Club to study the economic and social impacts of premier league participation and potential relocation to Power Court, focusing on sports-led and cultural regeneration to for example, active the town centre.

Peers were informed how a town centre taskforce was established in response to challenges identified. The taskforce brings together disparate groups, including public health, community safety, and youth representatives, fostering a more integrated approach. The council shared how key projects and initiatives have been mapped, supported by a dedicated communications plan, with the taskforce meeting biweekly under the leadership of the portfolio holder for regeneration and inclusive growth.

Recent developments have included the appointment of a dedicated town centre project officer to coordinate workstreams; launch of a night-time economy task and finish group, feeding into the visitor economy plan and a continued decline in anti-social behaviour, as reported by the community safety partnership.

Peers were informed of the current plans which focus on completing the town centre delivery document by Q2 2025, with workshops planned to finalise short, medium, and long-term strategies for the town centre’s regeneration. Feasibility work is underway, catalyst sites have been identified, and The Stage is close to construction. The Power Court planning application will be reviewed, initiating further work on sports and cultural regeneration. A governance review of town centre groups is also in progress, ensuring alignment with the delivery plan.

The council understand the importance of changing the perceptions of Luton and the town centre and feel they are heading in the right direction and are using several levers to affect change for example maximising the opportunities new buildings and assets bring to the town, placement and engagement with asylum seekers in the town centre, improving public realm and specific capital projects, e.g. potential cinema renovation.

The council discussed with peers how there is a better understanding of the different users of the town centre, which are now segmented by 10 – 12 specific groups. The council know they are not communicating enough, and an important part of changing perceptions needs to be reinforced through regular and impactful communications that reach the different groups. Peers were pleased to hear some statistics from recent resident engagement confirming some improvement in perception and satisfaction; the council are prepared to try new approaches to the way they communicate and engage with all the different resident and community groups.

Peers were made aware of the terms of reference for Luton’s new economic growth strategy were agreed with the inclusive economy board in May 2024, followed by the procurement of specialist support to develop the strategy. The council appointed WSP to lead this process, creating an evidence base profiling Luton’s economic sectors and demographics. This evidence identifies key challenges and opportunities, forming the foundation of the strategy, which focuses on fostering inclusive and sustainable economic growth.

The strategy’s core objective is to support Luton’s growth through initiatives like the Airport Economic Zone, which aims to strengthen the aviation industry and capitalise on new trade routes and infrastructure investments, including Green Horizons Park. The overarching vision, aligned with Luton 2040, prioritises inclusive growth, poverty eradication, and community-wide benefits.

Peers were informed how the strategy is being drafted with emerging missions: Productive (boosting sector growth and business productivity), inclusive (enhancing employment access and supply chain integration), and resilient (regenerating the town centre and retaining local talent). Growth opportunities are linked to skill development, infrastructure, and space provision.

At the regional level, Luton contributes to a South Midlands economic strategy, supporting future devolution efforts. Local successes include job creation at Junction 10a, significant recruitment at Luton Airport, and the relocation of organisations like CAMRA and Clore Leadership to Luton. Nationally, the strategy aligns with the government’s ‘economic growth mission’ and emerging industrial policies.

Peers discussed with LBC officers, members and partners the closure of Stellantis’ Vauxhall plant. The closure provides the town with a significant economic setback, resulting in the loss of circa 1200 jobs and £300 million annually. Peers were informed of the efforts underway with unions, management, and government to retain parts of the plant or repurpose the site to mitigate the impact. Peers were impressed with the resilience the council are partners have displayed and are determined to maximise the opportunity and focus on despite the complex challenges, Luton remains committed to bouncing back and delivering inclusive, sustainable economic growth. Peers were informed that conversations with around 15 businesses seeking to grow and expand their operations across the Luton area have already taken place to discuss reskilling some of the impacted Vauxhall employees for future roles in local businesses. This was a positive example of the close working and partnerships between the council, business community and education sector.

The council has made good progress with drafting the economic growth strategy and is nearing completion, with internal reviews and stakeholder input concluding ahead of an extensive engagement phase. Peers were pleased to learn the final strategy and implementation plan will be completed in February and proceed through the council’s governance process, aiming for executive approval by 22nd April 2025. 

The council has in the pipeline work to align skills development with employment pathways in the economic growth strategy, working with the anchor institutions to enhance their role in driving economic growth, strengthening the alignment between ‘Luton Rising’ and economic development.

The council is working with partners on a regional economic strategy, including an application to the government’s devolution priority programme to take forward the formation of a strategic authority for the region.

Next steps:

Peers are confident that team Luton will continue to build on the remarkable progress they have made since the peer review through:

The LGA would like to thank Luton Borough Council for undertaking an LGA CPC Progress Review.

We appreciate that senior managerial and political leadership will want to reflect on these findings and suggestions in order to determine how the organisation wishes to take things forward.

Under the umbrella of LGA sector-led improvement, there is an on-going offer of support to councils. The LGA is well placed to provide additional support, advice and guidance on a number of the areas identified for development and improvement and we would be happy to discuss this.

Rachel Litherland (Principal Adviser) is the main point of contact between the authority and the Local Government Association (LGA) and their e-mail address is [email protected]