Kathy Freeman is currently the Strategic Director of Resources and S151 officer for Havering Council, an outer London Borough with significant financial challenges, resulting from an outdated funding formula that has failed to keep pace with the Borough’s fast-changing demographic profile. Kathy is supporting the Council to achieve medium-term financial sustainability, leading on discussions with MHCLG whilst ensuring the members, local MPs and the Borough’s residents have a collective understanding of the Council’s financial position.

Hi, Kathy! Thanks for joining us today. To get us started, could you tell us about your career journey so far?

I describe myself as someone who has grown up in local government finance. My journey began with a brief stint in tax at one of the ‘Big Four’ firms, but I quickly realised it wasn’t for me. I joined Barking & Dagenham on a trainee scheme and have been in local government ever since!

After qualifying, I moved to Greenwich, where I had the opportunity to act as the Head of Finance. This role tested my leadership skills, as it was my first managerial position.

I worked for a few other councils but returned to Barking & Dagenham when I had my first child to be closer to home. I progressed into Corporate Finance and eventually became the Deputy 151 officer. Later, I moved to Camden in the same role until the opportunity arose to become the Executive Director of Resources at Lewisham, my first role as a S151 Officer. The Mayor telephoned personally to offer me the job, which was fantastic! I was happy at Lewisham, having made the structural changes I wanted and starting to build the team. However, the pull of my home borough, Havering, was too strong to resist.

Periodically in my career, I considered moving into consultancy and I also considered a role at the Police, but my family commitments and the need for my values to align with the organisation kept me in local government. The direct intervention, support, and contact with residents make it hard to leave.

What are the key financial challenges in your council and local government more broadly?

Local government finance faces a sustainability issue with no immediate solutions. Year-on-year demand and costs are rising. We are currently seeking Exceptional Financial Support (EFS) from the Government, allowing us to borrow to fund day-to-day revenue costs. However, the level of borrowing is now disproportionate to our net budget, posing a significant sustainability challenge.

This situation drives difficult decisions that I must personally front. Motivating an organisation while being open and transparent about financial constraints is incredibly tough, and the teams are stretched.

This situation drives difficult decisions that I must personally front. Motivating an organisation while being open and transparent about financial constraints is incredibly tough, and the teams are stretched.

Local government has faced criticism for being ineffective and mismanaging finances, but the narrative is shifting. There is now wider recognition of the sustainability issues we face.

Our financial pressure comes from adults’ and children’s social care. The funding formula uses the 2011 census, which doesn’t reflect our current needs. We’ve seen significant growth in the children’s population and maintained a high proportion of older adults, with rising placement costs.

Despite the challenges, I remain cautiously optimistic. The funding reforms offer an opportunity for a sustainable future, but time will tell if we’ve been heard.

Looking forward, what are the challenges and opportunities that you see for the sector?

Devolution’s impact is a big area of uncertainty. The Government’s bold agenda will be interesting to watch unfold.

We need to address SEND issues, particularly in London, where falling school enrolments provide an opportunity to repurpose surplus buildings for SEND provision. We must also focus on medium-term workforce requirements as well as addressing the skills shortages in the sector.

The Government needs to take a system-wide approach to future policies and this offers many opportunities, such as joining up with health. However, this requires working beyond current organisational parameters and accepting that investments may not yield direct benefits for our own organisations. It also requires a cultural change to accept mistakes and learn from them.

How do you attract talent to your team?

The local government sector struggles to recruit, particularly in finance, where the potential for a Section 114 notice deters candidates. I seek like-minded individuals who enjoy a challenge and want to be part of the change. We should all do what we can to make Local Government the career of choice.

The step from Deputy to 151 officer is significant due to the responsibility involved and some people don’t want to take that step. Maintaining work-life balance has been challenging for me personally.

What does it mean to be a leader in finance now?

The skills required of a senior finance leader have evolved over the past 20 years. It’s no longer just about finances. Firstly, leadership is now about influencing and building trust rather than being directive. It’s a collaborative form of engagement while still asserting the right to make the final decision. Secondly, personal resilience is crucial. I used to carry the world’s responsibility on my shoulders, but realising I can’t control everything allowed me to focus on what I can change. This realisation was transformative.

I used to carry the world’s responsibility on my shoulders, but realising I can’t control everything allowed me to focus on what I can change. This realisation was transformative.

Thirdly, my role is to support my team so they can perform their best. I was once told to ensure that anyone who comes to talk to me leaves feeling better, and this advice has stuck with me.

Finally, what advice would you give to someone entering local government finance at the start of their career?

Come in with your eyes open because it is challenging. Despite the challenges, it’s incredibly rewarding. There are opportunities for development and growth, and you will learn a lot. The job is incredible, and that’s what keeps me going.