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2025-03-31-accounts

THE LEADERSHIP CENTRE FOR LOCAL GOVERNMENT

(A company limited by guarantee)

REPORT OF THE TRUSTEES and FINANCIAL STATEMENTS

for the year ended 31 March 2025

Company Registration Number 05467557 Charity Number 1123234

The Leadership Centre for Local Government Year ended 31st March 2025

REPORT AND FINANCIAL STATEMENTS 2025

CONTENTS
Page
LEGAL AND ADMINISTRATIVE DETAILS ...................................................... 3
WHAT WE DO .................................................................................................. 4
CHAIR’S STATEMENT .................................................................................... 4
STATEMENT OF TRUSTEES’ RESPONSIBILITIES ..................................... 15
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE
LEADERSHIP CENTRE FOR LOCAL GOVERNMENT ................................. 17
STATEMENT OF FINANCIAL ACTIVITIES ................................................... 21
BALANCE SHEET .......................................................................................... 22
STATEMENT OF CASH FLOWS ................................................................... 23
ACCOUNTING POLICIES .............................................................................. 24

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LEGAL AND ADMINISTRATIVE DETAILS

Registered Name: The Leadership Centre for Local Government Charity number: 1123234 Company number: 05467557 Registered office: 18 Smith Square, London SW1P 3HZ Statutory Auditors: Crowe U.K. LLP 55 Ludgate Hill, London, EC4M 7JW Bankers: Barclays, UK Banking, 1 Churchill Place, London, E14 5HP Solicitors: Bates Wells London LLP 2-6 Cannon Street, London, EC4M 6YH

Directors and Trustees

The Directors of the charitable company (the charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees serving during the year and up to the date of approval of the financial statements were:

Attendance – possible
4 Board Meetings
David Lloyd (Chair) 4
Helen Bailey 3
Cllr Keith House 3
Mel Nebhrajani (appointed July 2024) 3
Jan Sobieraj (resigned Feb 2025) 3
Tamara Finklestein (resigned July 2024) 0

Chief Executive

Mark Rogers

Secretary and Chief Operating Officer

John Jarvis

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WHAT WE DO

The Leadership Centre exists to support leaders to navigate complexity, foster collaboration, and create lasting positive change in their communities. Working across sectors and organisational boundaries, the Centre supports individuals and teams to shift from reactive, siloed approaches to systemic leadership—where relationships, place-based insight, and adaptive thinking drive better outcomes. Through bespoke programmes, immersive learning, and hands-on support, the Leadership Centre empowers leaders to engage with uncertainty, build trust, and unlock the collective potential of the people and places they serve.

CHAIR’S STATEMENT

This year has provided both challenge and promise for the Leadership Centre, as the landscape of public service leadership continues to evolve.

This period has seen the Centre continue to support leaders across the UK as they navigate profound challenges. Whether responding to evolving public expectations, resource constraints, or complex inter-organisational demands the need for thoughtful, place-based, and collaborative leadership has been thrown into even sharper relief. These moments of flux bring both complexity and possibility, and we are proud to have been a trusted partner to those navigating this terrain.

Our hallmark of place-based, relational, systems leadership, has proven both relevant and vital. Throughout the year, the Centre has worked alongside partners in local government, health, education, and civil society, enabling leaders to think and act differently in the face of entrenched issues. Our bespoke programmes, such as Future Vision, excitingly redesigned for 2025, and our continued emphasis on co-production and cross-sector collaboration, reflect a deep commitment to empowering leaders with the courage, insight, and adaptability required for these times.

Financially, the year was challenging. The loss reflects the tightening of commissioning budgets across the public sector and our choice to invest in strategic priorities. The Board remains vigilant and proactive in its stewardship, and we are confident that our long-term financial position remains sound. In parallel, we are taking steps to adapt our business model to ensure resilience while staying true to our charitable mission.

As we look ahead, we do so with both humility and ambition. The systems in which our public services operate remain complex, and ever shifting, but the work of the Leadership Centre in developing the leadership capacity needed to meet such complexity has never been more necessary.

I extend my thanks to our staff, enablers, trustees, funders, and all those with whom we have worked so closely this year.

Together, we continue to invest in the leadership that builds better futures, place by place, leader by leader.

David Lloyd, Chair

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REPORT OF THE TRUSTEES

The Trustees present their report and audited financial statements of The Leadership Centre for Local Government (“the Leadership Centre”) for the year from 1 April 2024 to 31 March 2025. The Trustees have adopted the provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities” (“FRS 102 SORP”) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011, the Companies Act 2006 and relevant Accounting Standards. The Trustees consider that the current level of the Centre’s unrestricted funds and, along with the continuing likelihood of securing funding for periods beyond April 2025, and with ongoing access to short term funding facilities from the LGA for at least a period of 12 months from the date of signing the accounts, the Centre has sufficient resources to continue as a going concern.

Structure, Governance and Management:

The Leadership Centre was established to help local government in England improve its political and managerial leadership. Its principal source of funding at the time was the Department for Communities and Local Government (DCLG), drawing on the Capacity Building Fund. The Centre was originally set up as a limited company and became a registered charity on 1 April 2008.

The Leadership Centre for Local Government is a company limited by guarantee governed by its Memorandum and Articles of Association dated of 13 June 2005, amended on 3 September 2007, 5 March 2008, 20 May 2009 and 12 February 2014 to improve its governance arrangements.

Appointment of Trustees

As set out in the Articles and Memorandum of Association, new Trustees are nominated and appointed by the existing Trustees. There is no formally constituted nomination committee and nomination matters are reported and taken at ordinary meetings. The Board of Trustees will advertise and invite suitable candidates, who can bring a full range of expertise to the Board, establishing their suitability through a formal selection process.

Trustee induction and training

New Trustees have a one-to-one meeting with the Chair and receive a full information pack comprising the Memorandum and Articles of Association, the Charity Commission guidelines for Trustees, agendas, papers and minutes of the last year’s board meetings, a blank register of interests form and the list of dates for future meetings.

Organisation

The Board of Trustees is responsible for the strategic direction of the Leadership Centre and is concerned with ensuring sound stewardship of the organisation, including overseeing its financial and business performance and agreeing related policies. The Board met four times in the year. The role of the Chair is paid, as set up in the Memorandum and Articles of Association and approved by the Charities Commission. There is no formally constituted audit committee and audit matters are reported and taken at ordinary meetings of the Board. The Board also sets the pay for the Chief Executive, who is deemed to be the key management personnel of the charity.

The Chair works closely with the Leadership Centre’s Chief Executive and Company Secretary who have delegated authority from the Trustees to manage the day to day running of the charity and delivery of its objectives in accordance with the agreed business plan and budget, including operational management of the Centre, finance and employment matters.

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Related parties

Trustees and senior officers verbally declare any potential conflict of interest at the beginning of each Board meeting. In addition, a register of interests is completed by Trustees and senior officers every year. Details of any transactions with related parties are fully disclosed in the Annual Report and Accounts in compliance with the applicable financial reporting framework.

Objectives & Activities:

Objects:

The objects of the Leadership Centre for Local Government, as set out in the Memorandum and Articles, are:

The advancement of education for the public benefit, in particular (without prejudice to the generality) by promoting, improving and developing leadership amongst public servants and, in particular, local authority employees and councillors.

To promote for the public benefit the efficient public administration of government and public services by the provision of education and training in the organisation and practice of the administration of government and the development of leadership skills for public servants, in particular, local authority employees and councillors.

All the charities activities are informed, designed and delivered through the lens of these objects and are undertaken to further our charitable purposes for the public benefit.

In deciding the charities objectives and activities, the Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties. Strategy:

The Leadership Centre’s strategy brings together the key elements of Purpose, Values and Practice through three missions that supports the charities objectives; and ensures the Centre’s distinctiveness and positive reputation. The missions are expressed as the three I’s:

Innovate: to strengthen the Leadership Centre’s research and development capability to ensure existing and new programmes meet needs and expectations.

Inspire: to deliver excellence in its core programmes and commissioned work, sharing generously its learning, thought leadership and extensive intellectual and human resources and networks; and growing the role, involvement and impact of all the Centre’s alumni and allies.

Invest: to a) identify programmes and other learning and development opportunities that strengthen the pipeline of future leaders and ensure its diversity; and reach into organisations and places less commonly engaged in the Centre's work.

…and b) to secure a small number of medium term partners and one-off sponsors with a commitment to developing their own leadership capabilities and, in pursuit of this, investing in the Centre’s missions.

The Leadership Centre is practical, politically astute and takes a 'do tank' approach to how it absorbs, generates and promotes ideas, collaborations, and services. This strategy requires the core team working with its community of Enablers, Alumni, Trustees, participants, partners, and allies, to craft value and generate impact in four key public service areas: Local Government, Combined Authorities, Health & wellbeing and the civil service.

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Significant Activities Undertaken:

The 2024 UK general election introduced a period of pronounced volatility and ambiguity across the public sector landscape. In the months leading up to and after the election, uncertainty around policy direction, departmental leadership, and fiscal commitments led to a discernible pause in strategic decision-making and funding clarity. This hiatus affected the initiation and momentum of some projects and programmes and created operational ambiguity for local authorities and their partners.

For the Leadership Centre, this environment underscored the importance of adaptive leadership and systems thinking. Our work supporting place-based innovation and collaborative action became ever more vital as public service leaders sought guidance in navigating complexity without clear national signals.

Developing Leadership and change capability:

Throughout the financial year the Leadership Centre created, designed and delivered a variety of projects and programmes aligned with its core priorities and in response to the needs of leaders and communities. Below are highlights in a year that the Leadership Centre featured in over 50 initiatives.

Programmes:

Future Vision: The Centre’s flagship senior leadership development programme. Another cohort was successfully curated and delivered. In the latter half of the financial year, with the backdrop of significant local, national and international cultural, technological, political and economic shifts, the programme was re-imagined and re-designed for 2025.

Leading the Impossible: The Leadership Centre, in Collaboration with Impossible Ideas, crafted a brand new experimental and immersive programme designed to support leaders to drive radical change in stuck systems. A prototype initiative was delivered, feedback, learning and insight gathered and an updated version to be launched in 2025.

Boosting Middle Leaders: The Centre’s ambition is to bring the best of what it offers to a wider audience, whilst creating ever more stimulating learning environments. During 2022-23, in collaboration with the Local Government Association, the Centre prototyped a new programme bringing together local government officers and councillors. During 2024-25 the Centre delivered the latest version to local government officers and councillors.

Health & Wellbeing:

The Leadership Centre has continued to work with a wide range of health leaders and organisations across the country to support the development of systemic leadership and placeshaping practice. Leadership and change support has included working with Integrated Care System boards, GP’s voluntary and community sector leaders and patient advocates. For example,

Greater Manchester Population Health Programme: The Centre designed and delivered a programme that aims to improve the health and well-being of all residents in Greater Manchester. It focused on addressing the social, economic, and environmental factors that influence health, promoting healthy behaviours, and ensuring access to quality care and support. The program emphasized a community-centred approach, empowering individuals and communities to take control of their health.

Devon: Working with members of a nascent Primary Care Collaborative Board, including GPs, Clinical Directors, Primary Care Network (PCN) Managers and Pharmacists, the Leadership Centre designed a suite of interventions to support collaborative place-based working. Wrestling with the dilemmas of working at scale across a large geography whilst maintaining agility at a locality level, we supported leaders to develop cross-organisational, panprofessional relationships, developed whole systems leadership skills and focussed on

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practical application to take advantage of opportunities at Integrated Care System and in localities, and experiment with innovative approaches, especially across general practices and pharmacies coming together, to improve patient outcomes.

Local Governance:

The Leadership Centre designs and delivers bespoke support for top teams and wider organisational leadership to equip local leaders with the insight, capability, and confidence to lead through transition and to co-create resilient, responsive public services, regardless of the prevailing political climate.

For Councils the Centre has supported a broad range of council officer and political teams, from city boroughs to counties and from those struggling financially to those looking forward and stretching into the future

For Combined Authorities the Centre has worked - on occasion with the Local Government Association - to design and deliver a range of interventions. From bespoke support to specific mayoral combined authorities, to facilitating large pan geographic communities of practice, the ambition of the interventions is to both assist in the locality now, and inform future support for upcoming devolution places.

Place:

The Centre has supported councillors, officers, private, educational, voluntary and community sector staff and the community to develop place-based approaches to locality challenges - from tackling sedentary behaviour to catalysing economic growth. For example:

Let’s Go Southall: the Leadership Centre co-designed a bespoke programme of interventions for public services and residents in Southall – supporting an investment in community leadership and change capacity. The resulting movement for change, which demonstrates collaborative leadership and learning, is shifting power, harnessing and releasing the energies and expertise of a diverse set of people to tackle inequalities and increase physical activity.

Innovation Places Leadership Academy (IPLA): an exciting initiative aimed at helping local leaders spark innovation in their regions. Drawing on the Centre’s experience from programmes such as Total Place, the initiative equips locality teams with the skills needed to navigate complex environments and lead change at different systemic levels whilst focusing on understanding the unique strengths of each place and how to use them to drive economic growth and renewal.

Nurturing Networks:

The Centre’s distinctive contribution to leadership is grounded in a relational approach that allows for deep exploration, sense-making and action. The Centre therefore proactively curates and maintains its networks and relationships which includes over 300 Alumni and a vast range of colleagues from local and national organisations, skilful leadership and change practitioners, and interested parties.

This exceptional network represents a powerful catalyst for change in public services and in civic society in the round. Activity in 2024-25 included:

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Achievements & Performance:

The Centre’s team is extremely grateful to all those that have placed their faith in them over the past twelve months – it’s been a pleasure working with such enthusiastic and committed public servants.

Leadership Development Impact:

Below are quotes from some of those the Centre has worked with during the year demonstrating the difference the charity’s work has made to its beneficiaries and wider benefits to society as a whole.

“I found the sessions really enlightening and useful – the different approaches and themes that we were able to look at – and you can’t overstate the value of being in the room together. ”

“The workshops have been exceptional and exemplary. The sense of building shared purpose, valuing different experiences and perspectives and growing an eco-system of connected people, organisations and cultures has been outstanding!”

“The overwhelming outbreak of collaboration and morale that happened does quieten down after the Leadership Centre leaves so it’s up to us to carry it on. The programme was good fun – it was nice to be surrounded by the rest of the people in the system. We have to face difficult conversations quite often and the programme helped with that. The opportunity learn off each other is just invaluable.”

“I found it useful, particularly as a reflective space. It allowed me to step away from the dayto-day problem-solving and think about the bigger picture. I've taken away lots of tips and tricks which I can use in my daily practice. The facilitators were incredibly knowledgeable around the NHS, change management and the public sector generally. Their facilitation style was excellent, and I learned a lot just from observing them. ”

“There was something that sticks in my mind about how we've got a really complex system with really complicated problems, but that doesn't mean that the solution has to be something that's very complex and very complicated. And that's really given me a lot of a lot of power to go have a different type of conversation.”

“I had a very, very positive experience on the programme. I think it’s helped me make better use of my position at the table. It’s given me more confidence to push back or ask important questions.”

“The programme definitely helped me think about systems convening and prevention, particularly in terms of partnership working. It provided valuable insights into how we can take a more strategic approach to collaboration across sectors. And thinking in terms of how we take certain things forward from a strategic partnership perspective—honestly, it has been incredibly useful.”

“A lot of my role is about considering where we want to go as a partnership. It’s really about creating that collective, shared vision that people can rally behind. It’s about integrating systems thinking and finding ways to connect different pieces. Some of the tools from the course are already proving valuable in this development. From my perspective, it’s been incredibly useful, both for evolving my thinking and for its practical application.”

“It was thought-provoking, and it gave you space to reflect. It didn’t tell you exactly how to do everything—nor should it have—but it provided the opportunity to step back, reflect on what we were being told, and listen to colleagues from a multitude of different backgrounds. I think that was a really great element of the course. It allowed us to share and discuss ideas, which was really useful. Honestly, I just wanted more of it! My only criticism

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would be: ‘Why did it have to end?!’”

“I think it's really important for leaders to learn from the way we've done this, about the diversity, the assembly of the individuals who benefited from this programme. They came in as individuals and they left as system leaders who recognised the different challenges and didn't feel alone in addressing them.”

“You’re talking about some things that can be quite difficult and uncomfortable to visit, so actually having a facilitator that creates that safe environment with such a large group of people, I think that's not to be underestimated.”

“The creative and experiential methods of the course were a great way to approach the challenges of leadership in complex systems. The course created and enabled space for me to think deeply about how I lead and how I can test new ideas and methods. The programme made me reflect upon what is important, both personally and work. How to think about the future positively and how to achieve the change you aspire to.”

“The engagement within the cohort was fantastic, and I found it very valuable to have such a diverse group, each bringing unique perspectives on leadership. It was a brilliant course, and I would certainly recommend it 100% to anyone”.

“I feel like this is really important training. People like myself don’t always have an opportunity to step in and think ‘actually, I am part of the bigger picture’. I feel like there is something really powerful in being part of the movement and the training is helping me to navigate these difficult spaces. The training has been empowering and exciting and will help us to better collaborate within the VCSE. On the whole it’s been incredibly enlightening and I know I will now be able to do good things because of it!”

Communications:

In 2023 and 2024 the Centre’s communication strategy included an overhaul of website architecture, user journey and social content. During 2024-25 all digital platforms had increases in interactions and followership, resulting in more enquires.

Financial Review:

The Covid-19 pandemic impacted the Leadership Centre’s reserves over an extended period of time as it sought to maintain support for public service leaders and staff whilst regular ways of operating were restricted. Whilst steps were taken to maintain the viability of the Leadership Centre through reducing overheads, actively managing debtors and shifting ways of working, it was not possible to offset fully the impact on revenues and margin and, therefore, reserves. Consequently, the Centre continues to find new ways to grow itself out of a short-term position.

2022-23 represented a financial shock to the organisation, which became clear mid -way through 2023-24. With clarity of the situation, the Leadership Centre has managed to attract some private sector support, as well as significant specific funding from public sources, to reduce the in-year deficit compared to the previous year. 2024-25 represented a building year - creating the foundations and investing in capacity and processes for future growth and service

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development. The in-year deficit was halved compared to the previous year, which would have been fully closed had slippage not occurred in some client projects.

Results were a use of reserves of £347k (a £55k increase from the £292k deficit the previous year). Income for the year was £1,828k (an £81k increase from £1,747k the previous year). Support costs decreased by £132k and overall staff costs decreased by £2k. Expenditure for the year was £1,883k (£16k down from £1,899k the previous year). During the year the charity received a restricted grant of £79k which was fully spent in the year. As a result, the reserves figure at the year-end decreased to a deficit of £347k (down from a £292k deficit the previous year).

Principal risks and uncertainties

1. Financial Sustainability

The Centre's primary income stems from designing and delivering leadership development programmes, supplemented by grants, investments, and sponsorships. This reliance on programme income exposes the Centre to financial risks, especially if demand fluctuates or funding sources diminish. Economic uncertainties, such as inflation and rising operational costs, can further impact financial stability.

2. Operational Capacity and Delivery

Ensuring the Centre has adequate staffing and resources is crucial for delivering high-quality programmes. Challenges in recruitment, retention, or capacity constraints could affect service delivery and the Centre's reputation. Additionally, the need for continuous innovation to meet evolving client needs presents ongoing operational demands.

3. Governance and Compliance

As a registered charity and company limited by guarantee, the Centre must adhere to various legal and regulatory requirements. Non-compliance, whether in financial reporting, data protection, or other areas, poses risks of legal penalties and reputational damage. Maintaining robust governance structures and internal controls is essential to mitigate these risks.

4. Reputational Risk

The Centre's effectiveness and credibility are closely tied to its reputation among stakeholders. Any perceived shortcomings in programme quality, ethical standards, or stakeholder engagement can adversely affect its standing and ability to attract future partnerships or funding.

5. Cybersecurity and Data Protection

Handling sensitive information necessitates stringent cybersecurity measures. Risks include data breaches, cyber-attacks, and non-compliance with data protection regulations, all of which can lead to legal consequences and loss of stakeholder trust.

6. Strategic and Sectoral Changes

Shifts in public sector priorities, policy changes, or alterations in the leadership development landscape can impact the Centre's strategic direction. Staying adaptable and responsive to such changes is vital to remain relevant and effective.

  1. Dependency on Key Personnel

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The Centre's success is often linked to the expertise and relationships of its key staff members. Loss of such personnel can disrupt operations and affect stakeholder relationships. Succession planning and knowledge transfer are important to mitigate this risk.

The Leadership Centre has reviewed its arrangements for risk management with clear responsibilities assigned to named senior officers for the management of the principal risks. The Trustees consider these risks are being effectively mitigated.

Reserves policy

The reserves policy requires the retention of adequate funds to support approximately three months of operating costs for the Leadership Centre. Taking account of current costs and operational circumstances, the retention required to cover at least three months of full staff costs and accommodation, including facilities and IT would be £160,000. The policy, which is reviewed regularly, is considered adequate at the present time. Whilst it is currently not met it will be looked at again, in the light of changing economic, funding circumstances and timing. As at 31st March 2025, the balance on unrestricted reserves was -£347k.

The breadth of current projects, coupled with the new strategy, project pipeline, and institutional supporters, provides a platform for the Leadership Centre to return to regular surplus, contributing to reserves over the next 3-5 years, bringing unrestricted reserves closer to the optimal amount.

Going Concern

The trustees have considered the financial position and future business prospects and consider that a going concern opinion is reasonable. The change in the charity’s financial circumstances, largely due to an extended Covid-19 impact, are unprecedented for the Centre, but recoverable. In an immediate response to these matters the charity has taken action to reduce overheads, secure institutional supporters, and increase trade.

Looking forwards Trustees have considered:

Demand for the services: the services the Leadership Centre provides are in demand and highly regarded. The context in which public sector leaders are operating is only becoming more complex and challenging. Leaders say the support we provide them is invaluable.

Financial performance: Reviews of existing services provided and changes to new ones will improve individual projects financial performance and the overall organisations stability. This is a process which will continue.

Existing commitments: The Centre has a breadth and depth of committed project and clients throughout 2025-26 and into 2026-27 to provide a level of certainty now, and which also creates a platform for increased activity in future years.

Strategy and Pipeline: The Centre’s strategy and business plan provides a basis on which new partnerships can be formed and existing ones extended. It will support the charity to offer new services into existing sectors and reach into new ones.

LGA support: The LGA has committed to provide the Leadership Centre with ongoing financial support for at least a period of 12 months from the date of signing the accounts.

In addition, the Trustees continue to investigate opportunities to enhance the long-term sustainability of the charity, including new areas of business and sponsorship.

As a result of all the above the Trustees consider the going concern basis to be appropriate.

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Plans for the future:

The Leadership Centre views itself as being part of a wider national ecosystem of leadership for public good, embracing a generous ethos in doing its work. This drives it to seek excellent value for the investments of money and time that clients and partners place into its services.

This approach positions the Leadership Centre as a thinking partner and critical friend to those institutions, places, and individuals that it works alongside – whilst staying objective, curious and empathetic, and striving for excellence.

Direction of travel:

The essence of the Centre’s direction of travel is captured in its ‘do-tank’ approach, embodied in restless enquiry into how leaders can best understand and navigate complexity and, accordingly, achieve the greatest public good through their partnerships and in their places.

The decisions made, resources deployed, paths walked or made will continue to be framed by the Centre’s strategic missions and informed by local and national priorities.

- Innovate: examining cutting edge leadership issues that matter most.

We believe that innovation happens when unlikely combinations of people come together in enquiry. We will act as a convenor and enabler, connecting a variety of disciplines through a rolling programme of initiatives that anticipate, investigate and develop the practical skills and approaches required for the changing demands of place leadership and the challenges faced.

Inspire: delivering relevance and excellence.

The Centre will generously share its learning, thought leadership and extensive intellectual and human resources and networks. We will grow the role, involvement and impact of all the Centre’s alumni and allies, ensuring the availability of more entry and progression pathways, a wider range of learning sets and networks, and a programme of one-off refresher or new learning opportunities.

Invest: nurturing future leaders.

The Centre aims, with partners, to strengthen the pipeline of future leaders and ensure its diversity – reaching out to under-served sectors, organisations, people and places. We will create more opportunities for first and middle leaders to engage in systems thinking, system challenges and place-based leadership so that they are better equipped both in the here and now and for more senior roles they may seek in the future.

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Aims & Objectives:

2025 marks the 21st anniversary of Leadership Centre and the business plan for 2025-26 structures the Centre’s aims and objects to build on that legacy, returning to surplus. Our focus is across three main areas:

Corporate:

Products and Services:

The Centre will update its existing and rapidly develop new products and services to four key markets, Local Government, Strategic/Combined Mayoral Authorities, Health and Wellbeing and Programmes. All our interventions will feature the characteristics of:

Visibility and Credibility:

The Centre will invest further capacity in improving its visibility and credibility through:

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The Leadership Centre for Local Government Year ended 31st March 2025 Trustees’ Annual Report

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of the Leadership Centre for Local Government for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations.

Under Company law the Trustees are required to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the excess of income over expenditure for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Provision of information to Auditors

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This confirmation is given and should be interpreted in accordance with the provisions of section 414 of the Companies Act 2006.

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Auditors

A tendering process is in progress in relation to the appointment of the role of Statutory Auditor. A resolution for the appointment of the auditors of the Company is to be proposed at a forthcoming Board Meeting.

Approved by the Board of Trustees on 23[rd] September 2025 and signed on their behalf by

David Lloyd Trustee

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The Leadership Centre for Local Government Year ended 31st March 2025 Independent Auditors Report

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LEADERSHIP CENTRE FOR LOCAL GOVERNMENT

Opinion

We have audited the financial statements of The Leadership Centre for Local Government (the ‘charitable company’) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on

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The Leadership Centre for Local Government Year ended 31st March 2025 Independent Auditors Report

the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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The Leadership Centre for Local Government Year ended 31st March 2025 Independent Auditors Report

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were taxation legislation, employment legislation, health and safety legislation and General Data Protection Legislation (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, specific procedures to test timing of recognition of income, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company

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The Leadership Centre for Local Government Year ended 31st March 2025 Independent Auditors Report

and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Vincent Marke Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

55 Ludgate Hill London EC4M 7JW

Date:

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The Leadership Centre for Local Government Year ended 31st March 2025

Company Registration Number 05467557

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2025

Notes
Income from:
Grants
1
Charitable Activities
1
Investment income
2
Total income

Expenditure on:
Charitable activities
6
Other Costs
8
Total Expenditure
Net expenditure
4
Reconciliation of
Funds:
Total funds brought
forward
Total funds carried
forward
13		 Unrestricted
funds
2025
£
-
1,827,394
260
1,827,654
1,862,136
20,651
1,882,787
(55,133)
(292,069)
(347,202)		 Restricted
funds
2025
£
78,837
-
-
78,837
78,837
-
78,837
-
-
-		 Total
funds
2025
£


78,837
1,827,394
260
1,906,491
1,940,973
20,651
1,961,624
(55,133)
(292,069)

(347,202)		 Total
funds
2024
£
80,000
1,664,428
2,602
1,747,030
1,878,536
20,617
1,899,153
(152,123)
(139,946)
(292,069)

There are no recognised gains or losses other than those disclosed above.

All the above results derive from continuing activities.

All income and expenditure in the prior year was unrestricted.

The accompanying notes form part of these financial statements.

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The Leadership Centre for Local Government Year ended 31st March 2025

Company Registration Number 05467557

BALANCE SHEET

As at 31 March 2025

Notes
Current assets
Debtors
9
Short term Investments
2
Cash at bank and in hand
Creditors: amounts falling due
within one year
Creditors falling due within
one year
10
Net current liabilities
Total assets less current
liabilities
Funds
Restricted Funds
13
Unrestricted Funds
13		 2025
£
314,744
-
10,000
324,744
671,946
671,946
(347,202)

(347,202)
-
(347,202)
**(347,202) **		 2024
£
350,711
-
10,000
360,711
652,780
652,780
(292,069)
(292,069)
-
(292,069)
(292,069)

These financial statements were approved by the Trustees on 23[rd] September 2025 and are signed and authorised for issue on their behalf by:

David Lloyd Trustee

The accompanying notes form part of these financial statements.

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The Leadership Centre for Local Government Year ended 31st March 2025

STATEMENT OF CASH FLOWS For the year ended 31 March 2025

Note
Cash flow from operating activities
12
Net cash outflow from operating activities
Cash and cash equivalents as at 1 April
Cash and cash equivalents as at 31 March
Cash and cash equivalents consists of:
Cash at bank and in hand
Short term deposits
Cash and cash equivalents as at 31 March		 2025
£
-
-
10,000
10,000
10,000
-
10,000		 2024
£
-
-
10,000
10,000
10,000
-
10,000

The accompanying notes form part of these financial statements.

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The Leadership Centre for Local Government Year ended 31st March 2025 Notes to the Financial Statements

ACCOUNTING POLICIES

BASIS OF ACCOUNTING

The Leadership Centre is a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, The Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

GOING CONCERN

The Trustees (who are also the directors of The Leadership Centre for Local Government (‘the Centre’) for purposes of company law) have prepared the accounts on a going concern basis. As described in the Report of the Trustees, during 2024/25 the Leadership Centre worked closely with the LGA and various public/privately funded specified bodies. The Trustees have considered the likely impact of Covid-19 on the operational activities of the Leadership Centre and are of the view that there was an impact.

Looking forwards, Trustees have carefully considered; the demand and need for the charities services, the financial performance improvements available, existing commitments, operating environment, strategy and project pipeline. As a result of this deliberation, and the commitment of ongoing support from LGA, for a period of at least 12 months from the date of signing the accounts, the Trustees consider the plans, and likelihood of securing future funding adequate to ensure the Leadership Centre has sufficient resources to continue as a going concern.

FUNDS

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

INCOME POLICY

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received.

Income from donations is recognised on receipt, unless there are conditions attached to the donation that require a level of performance before entitlement can be obtained. In this case income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Leadership Centre and it is probable that they will be fulfilled.

Government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income comprising only bank interest on short term deposits is recognised on a receivable basis.

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The Leadership Centre for Local Government Year ended 31st March 2025 Notes to the Financial Statements

RESOURCES EXPENDED

Expenditure is recognised on an accruals basis. This occurs when a legal or constructive obligation commits the Leadership Centre to the expenditure.

Irrecoverable VAT is charged against the category of resources expended from which it is incurred.

Any costs of generating funds comprise the costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the Leadership Centre in the delivery of its activities and services for its beneficiaries. It includes both the costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grants payable to third parties are included in expenditure on charitable activities. Where unconditional grants are made, these amounts are recognised when a constructive obligation is created, typically when the recipient is notified that a grant will be made to them. Where grants are conditional on performance, then the grant is only recognised once any unfulfilled conditions are outside of the control of the charity.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly: others are apportioned on an appropriate basis.

ALLOCATION OF SUPPORT COSTS

Support costs are those that assist the work of the Leadership Centre but do not directly represent charitable activities and include office costs, governance costs, and project management costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to those activities on a consistent pro rata to the level of direct costs incurred.

The analysis of these costs is included in notes 6 and 7.

TAX

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation tax purposes.

1.
INCOME
Income from donations and grants
Voluntary Income and Grants
Income from charitable activities
Services recharged		 2025
£
75,737
1,827,394
1,903,131		 2024
£
80,000
1,664,248
1,744,428

Voluntary income and grants mainly relate to funding from other public sector bodies. It is allocated to the main activities of the charity. Services recharged include events and conferences, publications and consultancy. £75,737 (2024: £10,000) of the above grant income was attributable to restricted funds and £1,827,654 (2024: £1,734,428) to unrestricted funds.

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The Leadership Centre for Local Government Year ended 31st March 2025 Notes to the Financial Statements

2. INVESTMENT INCOME

All investment income arises from interest bearing deposits. The Leadership Centre participates in arrangements in which surplus cash balances are deposited with borrowers on the LGA’s approved list. The Leadership Centre’s investments are pooled with those of other entities that have adopted the LGA Group Investment Strategy. Investments are typically for periods of up to six months and as such the loan amount is a reasonable assessment of fair value. The LGA Group Investment Strategy strictly applies credit limits for all of the financial institutions to ensure that deposits are spread across a number of its approved counterparties. No credit limits were exceeded during the year and the Leadership Centre does not expect any losses on short term investments. The difference between carrying value and fair value is immaterial.

3. AUDITOR’S REMUNERATION

The auditor’s remuneration amounts to an audit fee of:

2025 2024
£ £
Audit fees 3,500 3,500

No non-audit fees were paid in the year to the auditor (2024: £nil).

4. EMOLUMENTS AND RELATED PARTY TRANSACTIONS

Total remuneration of £17,117 (2024: £17,117) was paid to the Chairs for work done in this capacity in accordance with a written agreement approved by the Trustees under clause 5.9 of the Memorandum of Association. Reimbursement of expenses to £338 (2024: £nil) Trustee for travel costs totalled £338 (2024: £nil).

There were no other related party transactions in the current or prior year.

5. EMPLOYEES

.
EMPLOYEES
Staff, agency and secondments
Staff
Agency Staff fees		 2025
£
448,708
-

448,708		 2024
£
450,585
-
450,585

The aggregate employee benefits of key management personnel were £341,854 (2024: £369,439). The average number of senior staff employed directly during the year was four (2024: four) with employee benefits, excluding employer pension costs, in the following ranges:

Range £k 2025 2024
90-100
80-90
70-80
60-70		 2
-
-
1		 2
-
-
1

The average number of persons employed (including agency staff) was 6.7 (2024: 6.9 persons).

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The Leadership Centre for Local Government Year ended 31st March 2025 Notes to the Financial Statements

6. EXPENDITURE ON CHARITABLE ACTIVITIES

Delivery Areas
Let's Go Southall
Future Vision
Leadership Centre Originated Projects
Local Government
Health
Community Wellbeing
Other
Total		 2025
2025
2025
2024
Activities
Support
Total
Total
undertaken
Costs
Costs
Costs
Directly
£
£
£
£
741,231 248,926
990,157
1,041,693
270,285
90,769
361,054
323,348
12,344
4,145
16,489
46,273
274,693
92,250
366,943
233,924
13,622
4,575
18,197
149,671
17,526
5,886
23,412
4,541
138,769
46,603
185,372
79,086
1,468,471
493,153
1,961,624
1,878,536

£75,737 (2024: £10,000) of the above costs were attributable to restricted funds and £1,885,887 (2024: £1,868,536) to unrestricted funds.

7. BREAKDOWN OF SUPPORT COSTS

2025
£
Finance support
28,130
Direction
103,641
General Office Costs
183,387
IT
27,505
Staff Costs
150,490
493,153

Support costs are based on staff time spent on different activities.
8.
EXPENDITURE ON OTHER COSTS
2025
£
Trustees Emoluments (see note 4)
17,117
Trustee's expenses
338
Statutory Audit fees
3,500
20,954
9.
DEBTORS
2025
£
Trade debtors
107,938
Other Debtors
39,621
VAT
-
Accrued Income
167,185
314,744		 2024
£
28,490
81,366
46,091
10,519
458,288
624,754
2024
£
17,117
-
3,500
20,617
2024
£
259,497
12,664
-
78,550
350,711

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The Leadership Centre for Local Government Year ended 31st March 2025 Notes to the Financial Statements

10. CREDITORS

Trade creditors

Accruals and deferred income
Other taxes and PAYE
VAT
Earned Leave Liability
Other creditors		 2025
£
5,242
202,176
1,977
9,642
-
452,909
671,946		 2024
£
11,619
606,969
18,705
85,283
13,970
32,432
652,780

11. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for year
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash flow from operating activities		 2025
£
(55,133)
35,967
19,166
-		 2024
£
(152,123)
290,165
(138,042)
-

12. MEMBERS’ LIABILITY

The company is a registered charity and is limited by guarantee with no share capital. The liability of each member in the event of winding up is limited to £1.

13. FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS as at 31st March 2025

The balance of Net assets and liabilities fall under unrestricted funds.

Unrestricted funds
Unrestricted funds
Restricted funds
Total		 Current
Assets
Current
Liabilities
Funds
Total
£
£
£
324,744
(671,946)
(347,202)
324,744
(671,946)
(347,202)
As at 1 April
2024
£
Income
£
Expenditure
£
As at 31
March 2025
£
(292,069)
1,827,654
(1,882,787)
(347,202)
-
78,837
(78,837)
-
(292,069)
1,906,491
(1,961,624)
(347,202)

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The Leadership Centre for Local Government Year ended 31st March 2025 Notes to the Financial Statements

14. POST BALANCE SHEET EVENTS

The directors are not aware of any post balance sheet events (2024: none).

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