LGA Corporate Peer Challenge – North Devon District Council

A team of local government peers, led by the Local Government Association (LGA) delivered a Corporate Peer Challenge (CPC) of North Devon District Council from 21 – 24 October 2025. This was the council’s third formal CPC. The previous CPC reports can be found on the council’s website. The council’s additional “light-touch” governance review report, carried out earlier in 2025, can be found linked in committee minutes.

Corporate Peer Challenge is a well-established and respected improvement and assurance tool that provides robust, strategic and credible challenge and support to councils. Further details about the CPC process can be found in Appendix A.

Our peer team consisted of highly experienced and knowledgeable senior local government councillor and officer peers (see section four). We considered the five core areas covered by all CPCs: local priorities and outcomes, organisational and place leadership, governance and culture, financial planning and management and capacity for improvement.

This report provides North Devon District Council with feedback on the peer team’s findings. It provides the council with a set of high-level recommendations alongside further recommendations under each of the CPC’s core areas. There is an expectation the council will publish this report and a clear action plan to respond to all the recommendations highlighted.

North Devon District Council (NDDC) is a well-led, community-focused authority with a strong sense of place and a clear commitment to improving outcomes for residents.

The council is delivering against its five strategic priorities – Financial Security, Housing, Pride of Place and Prosperity, People Matter, and Climate and Environment – through ambitious regeneration, partnership working and housing initiatives.

The peer team found that while NDDC overall demonstrates confident and effective leadership, all councillors should be supported to have greater assurance stepping into their leadership roles to shape the council’s strategic direction. The council should clarify the functions and expectations of lead member roles, ensuring they align with corporate priorities and are supported by regular engagement with the leader and deputy leader. This will help foster cohesion and strategic oversight.

Although the council has delivered surpluses in recent years and maintains an achievable Medium-Term Financial Strategy (MTFS) covering 2024-2031 period, it does not yet have a formal savings and efficiencies programme to address the projected budget gap for the life of the MTFS. Implementing such a programme is essential to mitigate future risks and ensure sustainable service delivery. The council should also improve the clarity and accessibility of financial reports to support member engagement and member scrutiny of financial decisions.

Governance arrangements are broadly sound, with a positive culture and respectful officer-councillor relationships. However, given the structural positioning of statutory officers the council needs to ensure it has robust mechanisms for all statutory voices to be embedded in decision-making. Elected member engagement remains a priority, with low participation in training and some limited understanding around responsibilities. A refreshed development programme and improved performance reporting could support members in fulfilling their responsibilities more confidently.

Officer capacity is stretched, with several senior staff covering multiple roles. This potentially poses risks to resilience, wellbeing, and service delivery, particularly as the council moves into the delivery phase of Local Government Reorganisation (LGR). NDDC must take proactive steps to address these pressures through strategic workforce planning, succession management and exploring further shared working arrangements with neighbouring councils. The council’s strong ‘family feel’ culture and commitment to staff wellbeing are commendable but resilience indicators have declined and further support is needed to maintain morale.

NDDC’s external partnerships are a significant strength, with mature relationships across sectors and a track record of collaborative working. However, many of these partnerships rely on individuals which poses a risk post-LGR. The council should institutionally embed these relationships to safeguard their longevity. It should also amplify its voice regionally and nationally, demonstrating how investment in North Devon benefits the wider county and spotlighting the deprivation within the district.

The council’s regeneration and housing programmes are ambitious and well-aligned with strategic priorities. Becoming a registered housing provider and securing significant funding for affordable housing and homelessness prevention reflect a proactive approach to tackling acute housing challenges. However, the scale of ambition must be balanced with realistic delivery capacity, especially in light of LGR. The council should streamline its top priorities and ensure that investment decisions are aligned with corporate objectives, considering LGR.

Overall, NDDC is a proactive council with well-established place-based roots. It has a strong foundation of leadership, governance and community engagement. These key assets, alongside that of a very committed and engaged workforce, serve the council well. To maintain this momentum and navigate the challenges of LGR, the council should act on the peer team’s key recommendations. By doing so, NDDC can continue to deliver for its residents in the short to medium term and position staff and members for all future opportunities.

At the time of the Corporate Peer Challenge, the council was preparing to submit Local Government Reorganisation proposals, which – per the English Devolution White Paper – will see district councils replaced by new unitary authorities. That NDDC’s leadership still welcomed the peer review despite this uncertainty is a testament to their commitment to delivering the best possible service for residents.

Peer challenges are conducted by experienced LGA peers, including elected councillors and senior officers. The composition of the peer team was shaped by the specific focus of the challenge, with the LGA selecting peers based on their relevant expertise. The peers for this CPC were:

• Arthur Charvonia, Chief Executive, Babergh and Mid Suffolk District Councils
• Chris White, former Leader of St Albans District Council 
• Cllr Sue Baxter, Bromsgrove District Council 
• Karen Edwards, Executive Director, Rushmoor Borough Council
• Steven Pink, Chief Finance Officer (Section 151 officer), Havant Borough Council
• Charlotte Morton, Impact Graduate, LGA
• Francesca Stott, Peer Challenge Manager, LGA

This section of the report provides detailed feedback along with additional recommendations related to the five core areas of focus. 

When developing the action plan (in response to the CPC’s findings), the council should consider both the key recommendations presented in section three and the additional recommendations set out below. 

5.1 Local priorities and outcomes

North Devon Council’s political and managerial leadership is clearly committed to improving residents’ lives through regeneration, partnerships and housing delivery. Aligned with its corporate plan, the council is driving regeneration in Barnstaple and Ilfracombe and addressing socio-economic challenges. Key initiatives such as Northern Devon Futures, One Northern Devon, the Ilfracombe Poverty Truth Commission, and the Freedom Centre demonstrate strong partnership working. Becoming a registered housing provider further highlights the council’s proactive approach to tackling housing pressures.

In addition to the key recommendations of the importance of ‘team Devon’ and embedding partnerships and connections, we also recommend the council progress the following actions:

• NDDC should continue to lobby, louder and faster, at a sub-regional and national level for the interests of North Devon. 

  NDDC faces extreme pockets of deprivation which can be hidden by the stronger economic performance of other parts of the district. The council should demonstrate how investment in North Devon is mutually beneficial to partners inside and outside of the area. 

• NDDC should build upon its mature and rich relationships, in particular with its towns, to explore openly and honestly what the options are in relation to assets in light of LGR.

  Peers understand that the relationship is established and encourage NDDC to maintain momentum with this opportunity. 

• NDDC should consider how it will maintain momentum in Ilfracombe after the Poverty Truth Commission ends, given its higher levels of deprivation.

  Undoubtedly, NDDC is committed to improving residents’ lives in Ilfracombe, and the council should continue to prioritise its most deprived towns once the Commission closes.

• NDDC should remain mindful of perceptions that it prioritises urban areas over rural areas. 
  Peers heard from some partners and councillors that NDDC is focussed on Barnstaple and Ilfracombe and not its rural areas. 

Are the council’s priorities clear and informed by the local context?

NDDC’s Corporate Plan covers the period 2023-2027. The Corporate Plan is underpinned by the vision that ‘North Devon will be a sustainable, inclusive community; fostering prosperity and well being for all’. There is clearly a shared understanding of the council’s vision with partners; NDDC have aligned their vision with Northern Devon Futures, a strategic partnership of public authorities, health, education and business. This collaboration demonstrates NDDC’s holistic approach to improving the lives of NDDC residents. 

The Corporate Plan sets out five priorities: Financial Security, Housing, Pride of Place and Prosperity, People Matter, and Climate and Environment. NDDC has developed programmes and projects to deliver on these priorities and its wider vision. All council activity is clearly aligned to these priorities, with the Programme Management Office (PMO) helping ensure a ‘golden thread’ from strategic goals to service delivery. 

Each corporate priority includes objectives and actions. Progress is tracked in quarterly performance reports and an Annual Performance Report (last published in January 2025), which highlights key actions and case studies. To strengthen the Annual Performance Report, the council could add a ‘look ahead’ section outlining planned activity for the next 12 months to demonstrate a forward-thinking approach.

NDDC has forged strong regional and local partnerships to address severe deprivation through a joined-up approach. While 80.4 per cent of residents report good or very good health, Ilfracombe (Devon’s most deprived town and the district’s second largest) faces stark health inequalities, with life expectancy seven years below the national average.

NDDC is delivering targeted improvements in Ilfracombe through its ambitious Work Programme, spanning housing, regeneration, employment, culture, leisure, harbour projects, and asset maintenance. Notable achievements include acquiring two properties for temporary accommodation, completing the Watersports Hub extension, and delivering the town’s swimming pool. The peer team praised the breadth of this work.

NDDC has developed innovative, locally led solutions and continues to lobby for regional and national investment. Its partnership with the Ilfracombe Poverty Truth Commission exemplifies co-designed, lived-experience-based interventions. Partners commend the council’s leadership and member commitment. With the Commission’s report due in December 2025, sustaining momentum will be vital and peers welcome NDDC’s intentions to continue this work.

NDDC is committed to supporting its most vulnerable residents and should amplify its national voice. Emphasising the mutual benefits of investment in the district could strengthen its case, particularly in comparison to support received by areas like Cornwall. Local efforts are already driving meaningful progress, but continued support and investment from central government would be greatly welcomed to help sustain and scale work, especially in Ilfracombe.

Housing is a key priority for NDDC, with a new proactive strategy launched in 2025 focused on preventing homelessness, delivering new homes, and improving housing health. Since 2023, the council has:

• invested approximately £6 million to expand housing supply.
• delivered 13 temporary accommodation units via the Local Authority Housing Fund.
• secured nearly £2.8 million for the Healthy Homes Pilot in Ilfracombe and 27 low-carbon affordable homes in rural areas.

NDDC is now a registered social housing provider and has applied to become a Homes England investment partner, aiming to unlock further funding. This ambition is driven by acute affordability challenges: only 10 per cent of homes are affordable (versus 16.6 per cent nationally), and the median house price is 10 times the median salary. Second homes make up 4 per cent of properties, rising to 50 per cent in some coastal areas.

The council is advancing plans to acquire and repurpose housing, including a £2.2 million Brownfield Land Release Fund grant for the Seven Brethren site, which will deliver 180 homes (30 per cent affordable) by 2028. NDDC collaborates closely with North Devon Homes and other providers. 

Strong partnerships with public and voluntary sectors support homelessness efforts, including co-locating staff in the Freedom Centre in Barnstaple, offering wrap-around services to vulnerable residents.

While NDDC’s housing ambitions are commendable, they face capacity and financial risks ahead of LGR. Therefore it is important here, and in other key work areas, that workforce planning remains front and centre, given the fact that some senior staff carry a broad range of responsibilities.

Delivery against priorities and comparative performance

Overall, the council is performing well. In a 2024/25 survey, NDDC asked residents ‘how satisfied or dissatisfied are you with various elements of our service delivery?’. 80 per cent were either satisfied or very satisfied, compared to 56 per cent of respondents nationally who are ‘very satisfied’ or ‘fairly satisfied’ with the way their local council runs things. (Polling on resident satisfaction with councils, p.8)

Peers considered the LG Inform benchmarking data report which shows NDDC compares favourably with the average of the council’s CIPFA nearest neighbours across a range of indicators:

• NDDC performs well on processing planning applications. In 2025 quarter 2, the council processed 96.6 per cent of planning applications for major developments on time, compared to an average of 89.9 per cent in CIPFA nearest neighbour group, and 97.5 per cent of planning applications for non-major developments on time compared to a CIPFA nearest neighbour average of 88.7 per cent. 
• NDDC performs slightly better than nearest neighbours on the average time taken to process housing benefit claims – it takes NDDC an average of 6 days compared to 8 across comparators.
• In 2023/24, North Devon District Council performed strongly on waste and recycling. 45.8 per cent of household waste was reused, recycled, or composted – above the CIPFA nearest neighbours’ median of 42.3 per cent. Residual household waste per household was 420.6kg, below the median of 430.2kg. To build on this success, the Council has established a councillor-led working group to identify and drive further improvements.

Based on the LG Inform benchmarking report, NDDC faces challenges with:

• NDDC faces a major skills challenge. In 2023/24, only 2,430 people per 100,000 aged 19–64 had a further education qualification or higher (including apprenticeships), well below the CIPFA neighbour median of 3,114 and the lowest rate among its peer group.
• NDDC has a higher average of households on the housing waiting list. From 1 April 2024/25, there were 46.6 households per 1,000 households on the housing waiting list in North Devon. This compares to an average of 42.8 households per 1,000 on average in the council’s comparison group.
• In 2024/25 Q4 there were 1.70 households per 1,000 living in temporary accommodation in North Devon. This compares to an average of 1.59 per person in NDDC’s comparison group. 
• In 2024 the housing affordability ratio for North Devon was 9.07. This compares to 7.71 in England and an average of 8.51 in the comparison group of North Devon CIPFA nearest neighbours. This shows the distinct pressures that NDDC residents face with housing affordability. The peer team understands that NDDC has embarked on a new housing strategy to help tackle this (see above). 

Is there an organisation-wide approach to continuous improvement? 

NDDC’s performance management culture has strengthened and is becoming more embedded. Following a recommendation from the last CPC, the council established a Programme Management Office (PMO) to bring structure and support to performance processes. The PMO is working with teams to collate reports and build capacity.

While progress is evident, there’s scope to deepen this culture further. Simple actions like integrating performance into team meetings, celebrating success, and linking individual roles to council priorities can help to fully embed. The PMO will be an important function to utilise in line with recommendation three to ensure a savings and efficiencies programme is implemented and performance is monitored effectively.

A strong performance culture is vital to delivering the council’s five strategic priorities alongside LGR. To support this, the Senior Management Team (SMT) would benefit from dedicated time for horizon scanning and aligning services to key performance indicators.

Councillors and officers noted limited engagement with performance data in committee meetings, possibly due to unclear presentation. Introducing Red, Amber, Green (RAG) ratings and visual prompts could improve understanding. Reports remain text-heavy; clearer visuals would benefit both members and the public. Overall, the peer team feel it is worth the council reflecting upon this approach. 

5.2 Organisational and place leadership

The council demonstrates confident and effective leadership, underpinned by a strong sense of pride in place. Staff and elected members show a clear understanding of residents’ needs. The council’s joint Local Plan and Economic Strategy with neighbouring Torridge District Council is designed to meet those needs and peers saw some evidence of this. NDDC adopts a collaborative approach at the sub-regional level and is widely recognised by partners, businesses, and neighbouring authorities for its leadership and commitment to joint working.

To build on this success, NDDC should actively seek out comparable councils across England to explore alternative approaches and best practice in tackling shared challenges. The LGA regional team can help connect NDDC with relevant officer networks and senior officers may also benefit from peer learning opportunities such as joining a CPC team. The council would benefit from increased external and national investment, and there is a clear opportunity to strengthen lobbying efforts through its strong relationship with the local MP.

In addition to the key recommendation of addressing the leadership balance, we suggest the council progresses the following actions:

• Articulate its exemplary partnership working more proactively and consistently.

  NDDC is leading in this space and should shout loudly and proudly about it. 

• Ensure external communications celebrate both NDDC’s organisational achievements and the wider strengths of the district.

  The council is doing good work and communications should amplify the council's role in improving the district for residents. 

Does the Council Provide Effective Local Leadership?

NDDC is a well-led council, demonstrating strong and effective leadership both politically and managerially. The leader, appointed in July 2024, and the chief executive, in post since 2019, have developed a constructive and collaborative working relationship, underpinned by complementary leadership styles. This positive dynamic was consistently reflected in feedback from staff and elected members. Regular meetings between the leader and chief executive, alongside their shared commitment to delivering the council’s five strategic priorities, reflect a unified and focused leadership approach.

Senior officers and elected members described a culture of mutual respect, clear roles, and strong communication. Members commended the SMT for being accessible, responsive, and providing high-quality support especially in finance, regeneration, and governance. This trust fosters a stable, forward-looking organisational culture.

However, perceptions persist that NDDC remains overly officer-led, as noted in the previous CPC. This may hinder the council’s leadership potential. To address this, NDDC could introduce joint and independent strategic sessions for the SMT and Strategy and Resources Committee, enabling members to shape the leadership agenda more actively. Focused top team development could further strengthen collective leadership and clarify roles. The LGA can support this through tailored facilitation and development sessions.

Are There Good Relationships with Partners and Local Communities?

NDDC strives to cultivate an inclusive and prosperous place for all residents, as reflected in its vision. The council provides strong leadership of place within the district and plays a key role in driving the place agenda across the wider Devon region, particularly for deprived communities, through initiatives covered in 5.1.

NDDC has a joint Local Plan with neighbouring Torridge District Council, reflecting their shared challenges around rurality and deprivation. The Plan ensures development is strategically consistent, well-managed and beneficial to communities, the economy, and the environment. This joint working is reinforced through clear external communications and joint branding that emphasise the shared narrative. While the relationship is productive, there is further opportunity to deepen collaboration and unlock joint solutions to shared challenges such as staffing (peers note there is a joint maritime officer). 

Alongside the Local Plan, NDDC and Torridge have co-developed the North Devon and Torridge Economic Strategy 2024–2029 with partners and businesses. The Strategy builds on the area’s strengths – its coastline, rural character, manufacturing heritage, and emerging green industries – to grow sustainable businesses and high-quality jobs. It also supports year-round tourism and focuses on infrastructure, connectivity, skills, innovation and investment. Delivery is coordinated through the Northern Devon Futures Partnership, which brings together councils, businesses, education providers, and regional agencies to align regeneration, skills and investment priorities. 

This is especially critical for NDDC, which faces an ageing population and the county’s lowest proportion of residents with Level 4+ qualifications. Delivering this Strategy will be key to unlocking the district’s economic potential. NDDC should continue its leadership role, in partnership, to deliver the changes needed and monitor progress closely.

NDDC is widely regarded as “a council that gets things done”. However, partners emphasised the need for clearer communication with government and external stakeholders regarding the district’s unique challenges. In areas already facing geographic isolation, limited transport links, and economic deprivation, the lack of sustained investment continues to constrain growth and impact resilience. Without significant and targeted national support, the potential for long-term impact will remain limited.

NDDC has traditionally maintained a positive relationship with all councils across Devon. Understandably the impact of LGR and potentially different positions being taken by different councils has challenged this. Going forward, especially once the submissions are complete, it will be important for all stakeholder councils in Devon to collaborate effectively. It's important that restoring and maintaining effective member and officer working relationships is prioritised to ensure both the successful delivery of LGR across the Devon footprint and the continued delivery of services to residents.

NDDC maintains a constructive relationship with its Member of Parliament, who previously served as council leader. His familiarity with local issues enhances advocacy efforts and regular meetings between the MP and council leadership provide opportunities to raise NDDC’s profile in Westminster and unlock potential investment. This relationship is a strategic asset that should be further leveraged.

How Does the Council Communicate Internally and Externally?

NDDC has a strong communications function. External communications are clear, engaging, and consistent, supported by a well-defined brand. The council has shifted towards digital as part of its Communications Strategy 2023–2026, including the introduction of an AI chatbot to provide 24/7 support and free up customer service capacity. NDDC’s website, social media platforms and e-bulletins are valued by residents and partners as reliable sources of information.

Despite the digital shift, NDDC opened a Customer Services Hub in Barnstaple’s Green Lanes Shopping Centre in July 2025. The hub provides face-to-face support for residents, including help with applications and queries. Peers heard this visible presence was welcomed by residents and partners, and reflects NDDC’s commitment to accessibility.

The peer team noted examples of best practice in external communications but suggested the council could do more to celebrate its organisational achievements alongside promoting the district on a place level. While the council’s vision is ambitious and positive, it should articulate its successes more clearly, perhaps through narrative that captures its identity and impact. External partners consistently describe NDDC as helpful and accessible, which should be actively maintained and celebrated.

How Does the Council Listen, Empower, Co-Produce, and Collaborate?

NDDC is committed to listening and co-producing with its communities. It uses the online engagement platform Let’s Talk North Devon and maintains a dedicated inbox for resident feedback. Recent consultations have included the Local Government Reorganisation proposal. The council also has a Community Engagement Strategy (2024–2027) and conducts regular Residents’ Surveys, inviting feedback on its Annual Performance Report. The peer team also heard that NDDC maintains a strong and positive relationship with its town and parish councils, which NDDC should leverage in the lead up to LGR. 

These mechanisms reflect a genuine commitment to collaboration and empowerment, ensuring that residents have a meaningful voice in shaping local priorities and services.

5.3 Governance and culture

NDDC has in place effective governance arrangements but equally has recognised the need to demonstrate openness and willingness to improve, which peers commend. It is now important for NDDC to continue embedding the recommendations from both the governance review and this CPC, strengthening the council’s governance arrangements and making the organisation as resilient and robust as possible as it moves into LGR. There is a strong sense of ‘one team North Devon’ amongst all levels of staff and members, although there are pockets of fragmentation.

It is important to emphasise what the peer team referred to as a ‘family feel’ culture at the council. It is reflective of a well engaged, trusting, open and collaborative council culture – one which has a strong sense of place and preoccupation for delivering for residents, but also one where staff are united in their endeavour and are proud to work for NDDC. This is a real strength and something that members and officers alike should be rightly proud of. 

In addition to the key recommendation of providing clarity for the lead member role (3.2) and ensuring the stability and effectiveness of the golden triangle (3.4), we also recommend the council progress the following actions:

• Officers should support members in understanding their responsibilities so they can confidently step into their roles.

  NDDC should consider whether a refreshed and strengthened member development programme could help with this. 

• Establish regular and dedicated time for SMT and Strategy and Resources Committee to do strategic thinking and team leadership development, both separately and together.
  Currently, SMT are often drawn into operational matters and Strategy and Resources Committee do not regularly have meetings for horizon scanning.
• Continue to embed the organisation’s cultures and values across all layers of management and throughout the organisation. This is to ensure that all staff are both holding others to account and being held accountable themselves.

Light-touch governance review 

NDDC invited the LGA to undertake a light-touch governance review ahead of the CPC, focussed on the overview and scrutiny function. Completed in February 2025, the public report for the review can be found on NDDC’s website. That review provided NDDC with six governance focussed recommendations, which the council has clearly been progressing at pace, with nine actions based off the recommendations progressed by September 2025. The remaining actions are due to be implemented by the end of March 2026. The peer team were pleased to see this progress; however, issues identified regarding lack of clarity with lead member roles remain and should be prioritised. 

Are there clear and robust governance arrangements?

The council has the core components of good governance, including a streamlined risk register, a comprehensive constitution, an annual governance statement, and codes of conduct for staff and councillors. Since 2019, NDDC has operated under a committee system. Councillors chose to move to this system to foster collective, consensus-driven decision-making, which it has undoubtedly achieved. The service and policy deep dives by working groups on Climate Action and Water Quality in North Devon are proof of this. The committee structure includes:

• Strategy and Resources Committee 
• Scrutiny and Policy Development Committee
• Governance Committee
• Planning Committee
• Licensing and Community Safety Committee 

Each committee has a terms of reference (ToR) which sets out its purpose, and NDDC recently reviewed and updated the ToR for Strategy and Resources (S&R) and Scrutiny and Policy Development committees in response to recommendations from the governance review. Following the governance review, it has also renamed Policy Development Committee to Scrutiny and Policy Development Committee, to demonstrate the committee’s scrutiny role more clearly (albeit the Committee’s role has not changed; it has always performed scrutiny function, but name change provided clarity). There is an understanding from the political leadership that governance is an improvement process that should be continually reviewed and developed. 

To ensure the stability and effectiveness of the corporate “golden triangle” of statutory officers (Top tips for chief executives | Local Government Association), the council must be confident that robust governance mechanisms are in place. The MO in not part of the SMT group Though the peer team were reassured that the structure works in practice at NDDC, peer question whether it would remain effective if stress-tested. Statutory officer meetings are taking place, which is a positive foundation. A self-assessment against the LGA’s Improvement and Assurance Framework would provide valuable insight into how well the corporate statutory officers are supported in their roles and can help identify any gaps in governance that need to be addressed to maintain assurance and accountability across the authority.

Lead member roles and member development 

Despite operating under a committee system, the council has designated lead member roles. These are advisory only and do not carry decision-making powers. NDDC has a lead member protocol outlining the scope and responsibilities of these roles. However, they do not fully reflect the council’s corporate priorities – an issue the council should address to strengthen strategic alignment. Peers heard that members would welcome clarity on the purpose and expectations of lead member roles. NDDC should prioritise clarifying these roles and ensure lead members are adequately supported in understanding and fulfilling their responsibilities.

Notably, the finance lead member also serves as Chairman of the council but does not sit on the S&R Committee. While lead members do not hold decision-making powers, NDDC should consider separating these roles as the Chairman cannot present the budget to Full Council. It is also advisable for the finance lead member to attend S&R Committee meetings. The peer team advise that this matter is resolved as soon as it practical.

A recommendation from the 2021 report encouraged the council to “take members on your journey” and support all members in stepping into their organisational leadership roles. While peers noted some progress, this remains a key challenge. The council has a member training programme scheduled for 2025/26, but attendance has been low. Reviewing the timing and delivery format of these sessions could help improve engagement. Additionally, NDDC should establish mechanisms for members to provide feedback on training effectiveness, development needs, and broader governance improvements. The peer team encourage NDDC to draw on the LGA regional team and the LGA’s Liberal Democrat regional peer for support.

Is there a culture of challenge and scrutiny?

NDDC is committed to continuous improvement, demonstrated by inviting the LGA to conduct two peer reviews in 2025. While the council welcomes external challenge, internal scrutiny could be strengthened. Peers noted that although members are not resistant to challenge, they are often hesitant to hold officers to account. The committee system has fostered collaboration and cross-party working but may have limited effective internal scrutiny. Nevertheless, the foundations of good governance are in place, and recent Internal and External Audit Reports confirm that NDDC delivers value for money.

Member engagement with council business requires further reflection. The occasional member meeting has been inquorate, and that is never helpful for a range of reasons. There is merit in the council engaging with its members to seek to ensure this doesn’t occur in the future and work with its councillors to encourage more participation. NDDC should also review committee meeting agendas, as some agenda items do not need a decision in committee. Although a member induction programme was introduced, some members remain unclear about their roles and responsibilities. Peers heard that decisions are occasionally deferred because members have not adequately reviewed meeting papers. To support members, reports should be concise and performance reporting should be improved (see 5.4). The leader is aware of these issues, and senior officers should continue supporting members – despite low turnout at engagement sessions – to help them confidently fulfil their roles.

Several senior officers expressed concern about a lack of challenge from members. Some councillors stated they do not believe internal scrutiny is necessary at NDDC, citing trust in officers and a desire to maintain harmonious working relationships. While strong officer-member relations are commendable (96 per cent of councillors in the 2024/25 survey felt these relationships were working well), effective scrutiny is essential for good governance. NDDC should urgently consider how to encourage members to engage more actively in scrutiny. Officers should continue to reinforce councillors’ responsibilities in this area. The LGA can support through member training, peer mentoring and signposting.

Risk management and oversight 

The council takes a proactive approach to risk monitoring which is conducted regularly through the corporate risk group (CORGI). The group is a subset of SMT which is responsible for drafting and implementing the Council’s Risk Management Framework; reviewing the Corporate Risk Register quarterly and reporting to SMT and the Governance Committee; keeping an oversight of and challenging service risk registers and the achievement of mitigating actions arising; ensuring audit recommendations are appropriately managed. To enhance accountability, this group could keep formal minutes. 

The external auditor provided an unqualified opinion for the council’s financial statements VFM in December 2024. The 2023/24 annual audit letter is the most recent published and indicates no significant weaknesses, with some improvement recommendations. The Internal Auditor issued a Reasonable Assurance opinion, confirming that the council’s governance, risk management, and internal controls are generally sound and effective.

In response to the internal auditor’s recommendation, the council has now linked its Corporate Risk Register to Corporate Priorities, strengthening alignment between strategic objectives and risk oversight. However, while senior officers were positive about the internal audit service, it is perceived as somewhat light-touch and impersonal for NDDC. There may be potential for a more substantial role, particularly in the lead-up to LGR. NDDC should continue to ensure that the risk register accurately captures all risks identified and that the CORGI group is actively reviewing this.

5.4 Financial planning and management

Achieving financial security is central to NDDC’s Corporate Plan. This is reflected in the council’s trusted financial officer leadership and effective financial management. Budget reporting was recently strengthened by separating finance and performance reporting, following a recommendation from the governance review in February 2025. It could be further improved by sharing the monthly budget reports that go to officers with key lead members – currently, members only receive reports quarterly. 

Evidence based assessments support investment decisions, such as the purchase of Green Lanes, the development of a new recycling process hall and the decision to become a registered provider of social housing. The council takes a pragmatic financial approach to regeneration, aligning workforce reductions with budget constraints to create capacity for strategic investment in regeneration projects. 

However, the council does not have a savings and efficiencies programme to meet the budget gap as the revised modelling showed a reduced gap. Despite this, introducing one would support the council’s financial viability in the medium-term. Reports could be improved by being more service-led and detailed, with clearer narrative and context, as they are currently data-heavy and difficult for members to interpret.

In addition to the key recommendation of implementing a savings and efficiencies programme, we also recommend the council progress the following action:

• Encouraging member engagement with budget matters.

The peer team heard that there can be too much reliance on officers to present and discuss finance matters at committee meetings, rather than the lead member. This does not provide sufficient assurance that members understand or take ownership of the financial challenges facing the council.  

• Financial reports could be more detailed and more service led.

Reports would be improved with greater narrative from service managers on both why their budget/forecast is where it is, and what actions they are taking to improve the forecast. Monthly reports could also be shared with appropriate members (informally).   

Does the council have a clear understanding of its financial position? 

The council has a Medium-Term Financial Strategy (MTFS) covering the period 2025 – 2031 (refreshed in September 2025) with a clear outline of anticipated budget shortfalls and required savings. The 2024/25 budget was set with a net contribution into reserves, made up of £585k being placed into specific earmarked reserves and the use of £571k from earmarked reserves for 2024/25 and there was no planned use of general balances. The refreshed 2026–27 budget shows a reduced gap of £451k compared to the original projection of £1.557m, driven by revised funding forecasts and cost adjustments. The council set a balanced budget for 2025/26, with the use of a net £163k contribution from earmarked reserves.

The refreshed MTFS provides a more optimistic financial outlook than previously forecast, with the budget gap narrowing over the medium term and a projected surplus of £74k by 2030–31. NDDC has a reasonable level of earmarked reserves – £10.56m in April 2024 – it has historically drawn on these reserves to manage in-year budget gaps. In the last three years NDDC has delivered a surplus after the use of its revenue reserves. In the draft Statement of Accounts for 2024/25, the Section 151 Officer recommends maintaining a General Fund balance between 5% and 10% of the Council’s net revenue budget. As of 31 March 2025, the General Fund reserve stood at £1,238,000, representing 7.5 per cent of the net revenue budget. (Draft statement of accounts 2024-25, p.8)

Does the council have a strategy and plan to address its financial challenges?

The council does not appear to have reported to the Strategy and Resources Committee on any income generation or savings options up to September 2025. The absence of a formal savings and efficiencies programme presents a risk. To deliver the actions set out in the Corporate Plan, the council should develop a more structured approach. Without this, it may struggle to fully achieve the benefits of its financial planning or remain resilient in the face of future funding uncertainty.

NDDC has a capital programme with limited long-term planning. The programme is primarily funded through capital grants and borrowing, while the anticipated capital receipts have yet to be realised. Although it references potential investment in corporate priorities, such as acquiring additional property for temporary accommodation or transitioning the vehicle fleet to electric, it does not currently include any related expenditure. However, in July 2025 the council approved capital cost of £4m to purchase 15 additional units of temporary accommodation. The council expects to yield revenue savings even after borrowing costs and accounting for minimum revenue provision (MRP). NDDC may wish to take a more strategic approach to how it allocates and uses its capital resources.

Corporate priorities, regeneration and commercialisation

The council has a clear regeneration vision for Barnstaple (Barnstaple Vision | North Devon Council) which is linked to the Barnstaple Cultural Plan (Barnstaple Culture Plan | North Devon Council) Major investments, such as the purchase of Green Lanes Shopping Centre in Barnstaple, align with NDDC’s regeneration objectives and the Future High Streets Fund programme. Other regeneration investments in Barnstaple include the Tarka Leisure Centre and car park, Boutport Street properties, and restoring the Pannier Market. These investments demonstrate a clear alignment between financial decisions and strategic objectives, and NDDC is exploring introducing activity reports to demonstrate the outputs of this work which the peer team encourages. 

NDDC should remain alert to the risks associated with holding assets like the shopping centre, particularly given that similar investments have led to significant financial challenges for other councils. It is important that the council continues to assess rigorously the outturn of this asset, especially considering the risks posed by vacant units and consider alternative uses which would drive footfall. NDDC should also consider that further commercialisation and investment in capital projects may need to be reprioritised, considering LGR. 

NDDC is not reliant on commercial income. The council refreshed its Commercialisation Strategy in November 2024, setting six key outcomes, including expanding commercial activity and creating sustainable income streams. All capital projects require a business case, risks and associated costs and require formal recording of internal consultation, including Legal Services, Finance, HR, ICT and Procurement. Submissions are reviewed by a Project Appraisal Group. The peer team were made aware of the Green Lanes Shopping Centre but heard and saw less evidence of other commercialisation initiatives. Officers and members expressed interest in generating more commercial income, but NDDC must balance this ambition with the upcoming impact of LGR and the need to deliver savings.

Governance and member oversight

The finance team provides trusted leadership; however, financial governance could be improved with a savings plan that is reported to and overseen by members. Budget monitoring reports are shared monthly with senior management and quarterly with members. NDDC has acted upon the governance review which suggested improving clarity of reports by separating finance and performance reporting. Some members informed the peer team they welcomed this change. 

Officers and members regard the budget as a shared responsibility; however, member engagement could be stronger on budget matters. There appears to be too much reliance on officers to present and discuss finance matters at committee meetings, rather than the lead member. This does not provide sufficient assurance that members understand or take ownership of the financial challenges facing the council.  

The Section 151 Officer maintains a constructive relationship with the Strategy and Resources Committee and is held in high esteem by both members and the Leader. Since the introduction of the committee system, both officers and members have reported stronger collaboration and a more pragmatic approach to decision-making, which has fostered cross-party support on budget matters. To further strengthen member engagement, financial reports could include clearer narratives, concise analysis, and visual aids such as graphs and diagrams. NDDC could also consider whether financial reports could be reviewed and discussed more broadly with all lead members on a monthly basis to ensure transparency and informed decision-making. These enhancements would promote better understanding and enable members to carry out more effective scrutiny. As explored in 5.3, the council should consider separating the lead member role for finance from the Chairman of the council as soon as possible.  

The council demonstrates awareness of key financial risks, including equal pay liabilities, demand pressures, and income shortfalls. It has prudently factored in risks such as EPR funding volatility and the Fair Funding Review. Reserves have been established to manage business rates volatility and budget contingencies. The council has not yet ring-fenced reserves for LGR delivery, but intends to do so once MHCLG has announced the reorganisation plans for Devon. The peer team encourages this. To improve, NDDC could integrate service-level narratives into financial reporting. This would reinforce that NDDC’s financial position should be collectively owned by all and not just the finance department. Encouraging service managers to provide detailed explanations and actions will enhance transparency and accountability.

5.5 Capacity for improvement

As already outlined, the council benefits from a dedicated, long-serving workforce with a strong, positive culture and a clear commitment to community and priority programme delivery. Staff are respected by partners and ambitious in their efforts. This is a real strength of the council especially as it looks forward to LGR. 

At this same time, it is important that the council maintains capacity through change. The peer team heard of some cases, where not backfilling posts has led to overstretched officers and some  single points of failure. Senior leaders are covering multiple service remits, posing risks to wellbeing, resilience and service delivery. The added pressure of LGR may further impact morale and productivity. NDDC must proactively address these risks through robust organisational development planning. 

In addition to the key recommendations to address stretched officer capacity and to build recognition that members and staff will be heavily impacted by LGR into organisational development plans, we also recommend the council progress the following actions: 

• Consider further shared working with neighbouring councils. 
  Whilst there is some shared working, NDDC should consider utilising this more as a mechanism for greater resilience, particularly with posts that are difficult to recruit to and with a view to LGR implementation.
• Identify more opportunities for officers to co-create and discuss issues of concern and new ideas. 
  While internal communications and the Organisational Development group is effective, the council would benefit from further channels for staff discussion. SMT could do more to permeate through to reach staff at the mid-manager level. 

Is the organisation able to bring about the improvements it needs, including delivering on locally identified priorities? 

Officers understand their roles and how they contribute to the organisation, with strong cross-service collaboration and a holistic approach to problem solving. This is especially evident in housing, revenues and benefits, and other customer-focused teams. New staff spend time in the customer service team to build awareness of resident queries, and the co-location of staff at the Green Lanes Customer Service Hub supports this customer-centric joined-up working. The peer team commend NDDC’s approach.

Key partners praised NDDC’s prompt complaint responses. The peer team suggested focusing more on root causes to prevent recurrence. A review of frequent complaints led to major improvements in the refuse collection team, which now takes a more proactive approach that could be adopted by other services.

The council is confident in its capacity to deliver priorities and shows strong ambition for residents. It has successfully delivered several commercial and redevelopment projects (see 5.1). The peer team noted this ambition and advised balancing it with realistic goals ahead of LGR, suggesting a focus on streamlining top priorities due to the high volume of current projects. 

Does the council have the capacity to improve?

NDDC shows a strong commitment to continuous improvement, demonstrated by inviting two LGA peer reviews in one year. The council has invested in staff qualifications and is now offering training opportunities to prepare for LGR, which the peer team commended. However, officers report feeling overstretched, with many vacancies unfilled, leading to limited capacity.

The current structure seems shaped around individual strengths rather than strategic needs. Peers reflected there are opportunities for more shared working with neighbouring Torridge District Council, especially in planning, which could help tackle recruitment and efficiency challenges. 

NDDC aspires to be an employer of choice but faces recruitment challenges due to its rural location and limited succession planning. Senior officers often hold multiple critical roles, creating risks that the council needs to address. The peer team recommends strengthening staff capacity and embedding succession planning to build resilience ahead of LGR and mitigate risks to productivity and wellbeing.

Staff wellbeing remains a strength, with 68 per cent reporting happiness at work, 81 per cent enjoying positive colleague relationships and 68 per cent feeling supported within teams. Peers heard that officers also feel well-informed and supported by the senior team regarding LGR. However, resilience indicators have declined, with only 39 per cent feeling emotionally strong and 52 per cent able to bounce back from setbacks. The peer team noted that SMT is aware of these risks and is actively exploring ways to support staff resilience, which will be vital as the council heads into LGR delivery.

Improving staff engagement and organisational development

Internal communications are consistent and celebrate staff achievements, fostering a positive culture. The council’s Organisational Development group has a detailed action plan focused on wellbeing, talent, and performance management, and developed a new behaviour framework. It will be important to ensure focus on delivery of the plan is maintained given other priorities. The peer team praised the council’s commitment to staff development.

However, not all staff feel heard, particularly mid-managers, and some do not consistently follow the behaviour framework, which is not yet fully embedded. These gaps risk missing valuable feedback from staff facing challenges. To improve engagement, the council could introduce staff network groups or regular directorate-level forums to co-create ideas and enable staff to raise concerns.

The senior political and managerial leadership of the council should review and reflect on the findings and recommendations from this CPC.

To promote the principle of transparency, it is a requirement of the CPC process that the final report of the peer team is published in-full within three months of the review being completed. In this instance, this requires the report to be published no later than 26 January 2026.

There is a requirement for North Devon District Council to develop and publish an action plan within five-months of the peer team being onsite, no later than 26 March 2026. This action plan should provide clarity on the activity, milestones, and timelines that the council will work to in responding to the team’s findings. 

The action plan will also be central to the peer team’s re-engagement with NDDC through a progress review which is due to be completed by 24 October 2026.

In the meantime, Paul Clarke, Principal Adviser for the South West, is the main contact between your council and the Local Government Association. As outlined above, Paul is available to discuss any further support you require and can be contacted on 

Paul Clarke, LGA Principal Adviser for the South West

Email – [email protected] 

Tel – 07899 965730

Further information, support, and resources on LGR/Devolution, can be found on the LGA’s devolution and LGR Hub website.

CPC is a valued improvement and assurance tool that is delivered by the sector for the sector. It involves a team of senior local government councillors and officer peers undertaking a comprehensive review of key information and spending three days at the council to provide robust, strategic, and credible challenge and support.

CPC forms a key part of the improvement and assurance framework for local government. It is underpinned by the principles of Sector-led Improvement (SLI) put in place by councils and the LGA to support continuous improvement and assurance across the sector. These principles state that councils are responsible for their own performance; accountable locally, not nationally; share a collective responsibility for the performance of the sector; and rely on the LGA to provide the tools to support them. CPC is also key to councils in meeting their Best Value duty. UK Government expect all councils to have a CPC at least every five years. 

Scope and focus

The peer team considered the following five areas which form the core components of all CPCs. These are critical to councils’ performance and improvement.

1. Local priorities and outcomes - are the council’s priorities clear and informed by the local context? Is the council delivering effectively on its priorities? Is there an organisational-wide approach to continuous improvement, with frequent monitoring, reporting on and updating of performance and improvement plans?
2. Organisational and place leadership - does the council provide effective local leadership? Are there good relationships with partner organisations and local communities?
3. Governance and culture - Are there clear and robust governance arrangements? Is there a culture of challenge and scrutiny?
4. Financial planning and management - Does the council have a grip on its current financial position? Does the council have a strategy and a plan to address its financial challenges? What is the relative financial resilience of the council?
5. Capacity for improvement - Is the organisation able to bring about the improvements it needs, including delivering on locally identified priorities? Does the council have the capacity to improve?

As part of the five core areas outlined above, every CPC has a strong focus on financial sustainability, performance, governance, and assurance

The peer challenge process

Peer challenges are improvement focused; it is important to stress that this was not an inspection. The process is not designed to provide an in-depth or technical assessment of plans and proposals. The peer team used their experience and knowledge of local government to reflect on the information presented to them by people they met, things they saw and material that they read. 

The peer team prepared by reviewing a range of documents and information to ensure they were familiar with the council and the challenges it is facing. This included a position statement prepared by the council in advance of the peer team’s time on site. This provided information on the local context at the council and what the peer team should focus on. It also included a comprehensive LGA Finance briefing (prepared using public reports from the council’s website) and a LGA performance report outlining benchmarking data for the council across a range of metrics. The latter was produced using the LGA’s local area benchmarking tool called LG Inform. 

The peer team spent three days onsite at the North Devon District Council during which they gathered evidence, information, and views from more than 35 meetings, in addition to further research and reading and spoke to over 130 council staff together with councillors and external stakeholders.

LGA Member Development Support

LGA Councillor development  

Councillor workbooks 

Writing a Councillor development strategy 

LGA Civility in Public Life 

Councillor conduct and standards

Effective Scrutiny - Leadership Essentials

Contact: [email protected]

Commercial guidance and toolkit - Local Partnerships 

LGA Workforce Planning Support

Contact: [email protected]  

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• Local Government Reorganisation (LGR) Delivery Network