Governance and running out of money

23 January 2025

On 22 January, we hosted our first webinar of 2025: Governance and running out of money. The session brought together sector leaders to discuss growing financial pressures, and the governance strategies needed to navigate fiscal crises.

The session was chaired by GGI's Aidan Rave, who was joined by three speakers: our CEO Andrew Corbett-Nolan, Aaron Cummins, Chief Executive of University Hospitals Morecambe Bay, and Tony McArdle OBE, Lead Commissioner at Nottingham City Council. Together, they explored how governance can serve as both a safeguard and a liability in times of financial distress.

A key theme of the discussion was the critical role of governance structures in financial resilience. The speakers shared firsthand insights from their experiences in local government, healthcare, and corporate governance, emphasising that many organisations are not just struggling with budget constraints but facing existential financial crises.

Tony McArdle drew on his experience in local government intervention, highlighting the systemic issues that lead organisations into financial trouble. He stressed the importance of governance frameworks that enable early identification of financial risks and decisive corrective actions.

Aaron Cummins offered reflections from the healthcare sector, noting that financial pressures in the NHS require boards to balance short-term service sustainability with long-term strategic planning. He underscored the need for governance structures that support difficult financial decisions while maintaining accountability.

Andrew Corbett-Nolan framed the discussion within the broader governance landscape, emphasising that good governance is not just about compliance but about foresight, adaptability, and courageous decision-making.

The Q&A session that followed the main presentations reinforced the urgency of financial governance reform. Participants raised concerns about board-level financial literacy, with speakers agreeing that better financial education for non-executive directors and senior leaders is essential.

Another critical question addressed the balance between financial prudence and service delivery. Aaron Cummins acknowledged the tension but reiterated that clear governance structures help organisations make tough financial decisions while minimising service disruptions.

Crisis communication was also a recurring theme. Many organisations delay acknowledging financial trouble, leading to lost opportunities for early intervention. Tony McArdle emphasised that transparent financial reporting and open stakeholder communication are key to maintaining trust in turbulent times.

Finally, the panellists urged leaders to take a proactive, rather than reactive, approach to financial governance. Regular stress-testing of financial plans, early risk identification, and independent assurance processes were highlighted as best practices that could prevent organisations from reaching the crisis point.

The discussion concluded with a strong consensus: good governance is not a luxury but a necessity in today's financial climate. Organisations must embed financial resilience into their governance structures to survive and thrive in uncertain times.

Meet the author: Martin Thomas

Communication manager

Email: martin.thomas@good-governance.org.uk Find out more

Prepared by GGI Development and Research LLP for the Good Governance Institute.

Enquire about this article

Enquire
Here to help