The Charity Commission, the regulator for England and Wales, has issued an unprecedented Official Warning to Calderdale Metropolitan Borough Council for failing to fulfill its duties as the trustee of 13 local charities. This marks the first time the regulator has taken such action against a local authority.
Calderdale Council, like over 1,200 other councils across England and Wales, serves as a trustee for various local charities. These charities include key community assets such as Bacup Road Recreational Ground, Tetley Memorial Park, and the Public Central Library. As a trustee, the council is responsible for managing these charities’ assets, ensuring proper governance, and complying with all legal requirements, including filing annual returns with the Charity Commission.
However, the Charity Commission found that Calderdale Council has consistently failed to file the necessary annual returns and accounts for all 13 charities under its care, with some of these filings being overdue for several years. This failure has prompted the Commission to issue an Official Warning, a measure never before used against a local authority.
The warning comes with a set of strict requirements for the council. To rectify the issues, Calderdale Council must immediately file all outstanding accounts and implement processes to ensure future compliance with accounting responsibilities. Additionally, the council must update contact details for all charities, maintain a local register of charitable assets, hold regular trustee meetings, and review the financial controls of all charities under its trusteeship.
Tracy Howarth, Assistant Director of Regulatory Services at the Charity Commission, emphasized the seriousness of the situation, stating, “All trustees have a responsibility to their charities and beneficiaries to ensure that their charities are well managed. This is a duty that is important when vital community assets are in their care. In failing to file accounts or take action, even after we provided advice and gave support to comply with our instructions, Calderdale Council fell below the standard we, and the public, expect of trustees.
The Charity Commission’s Chief Executive, David Holdsworth, had previously warned all local authorities of the “significant administrative headaches” they could face if they fail to comply with their duties as charity trustees. In a letter addressed to local authorities, Holdsworth outlined actions to ensure compliance, including reviewing the regulator’s updated guidance and maintaining a register of charitable assets and land held by councils.
The Commission has made it clear that failure by Calderdale Council to take immediate remedial steps could lead to further regulatory action, which may include more severe consequences for the council.
This warning serves as a stark reminder to all local authorities that, as trustees, they must adhere to charity law and governance standards to protect vital public assets and ensure the continued delivery of services relied upon by their communities.
