Leading Through the Storm: Resilience and Recovery After a Section 114 Notice
- truthaboutlocalgov
- Sep 8
- 5 min read
Section 114 notices are no longer rare events. As financial pressures mount across the local government sector from rising demand and inflation to reduced funding and legacy debt more councils are finding themselves on the brink of insolvency. What was once considered an extraordinary measure is becoming a recurring reality. This shift demands a new kind of leadership one that is resilient, transparent, and strategically focused. The purpose of this article is to support those leaders. Whether you're a chief executive, senior officer, or elected member, navigating a Section 114 scenario requires more than technical expertise. It calls for emotional intelligence, collaborative thinking, and the courage to lead through uncertainty.
1. Emotional Resilience and Composure
In the immediate aftermath of a Section 114 notice, the pressure on senior leaders is intense. The spotlight is unrelenting, and the stakes are high. Emotional resilience is not about suppressing stress it’s about managing it constructively. Leaders must absorb the pressure without transmitting panic, and maintain a sense of stability even when the future feels uncertain.
This quality is especially important when dealing with staff who may feel demoralised, confused, or fearful. Leaders who remain composed help anchor the organisation, enabling others to focus on solutions rather than spiralling into blame or despair.
Advice for leaders:
Create space for reflection and decompression whether through coaching, peer support, or protected time.
Avoid reactive communication; prioritise clarity, consistency, and tone.
Model calmness and confidence to stabilise the organisation and reassure stakeholders.
2. Strategic Clarity and Prioritisation
A financial crisis demands ruthless prioritisation. Leaders must quickly distinguish between what is urgent and what is essential. Attempting to fix everything at once is a recipe for paralysis. Instead, recovery should be guided by a clear set of strategic objectives stabilising finances, restoring governance, and protecting core services.
Strategic clarity also means being honest about trade-offs. Not every service can be preserved in its current form. Leaders must make difficult decisions, but those decisions must be grounded in a coherent vision for recovery.
Advice for leaders:
Develop a short-term recovery roadmap with clear milestones and measurable outcomes.
Align senior leadership around a shared set of priorities and ensure these are communicated consistently.
Use plain language to explain the strategy to staff, members, and residents avoid jargon and ambiguity.
3. Courageous Transparency
A Section 114 notice is a moment for radical honesty. It is tempting to downplay the severity of the situation or deflect blame, but this only erodes trust. Leaders must be willing to acknowledge past failings, explain the current reality, and outline the path forward with clarity and humility.
Transparency is not just about communication it’s about culture. It sets the tone for how the organisation will operate during recovery. When leaders are open and accountable, they create the conditions for others to do the same.
Advice for leaders:
Share information openly with staff and residents, even when the news is difficult.
Be honest about what recovery will require, including service reductions, restructures, or external support.
Avoid defensiveness; focus on accountability, learning, and the future.
4. Collaborative Leadership
Recovery from a Section 114 notice is not a solo endeavour. It requires a collective effort across the organisation and beyond. Leaders must foster collaboration between officers, elected members, external advisors, and government departments. This means breaking down silos, encouraging cross-functional working, and building trust across political and professional boundaries.
Collaborative leadership also involves humility recognising that no one has all the answers and being open to challenge and support. Councils in crisis often benefit from external expertise, but this must be integrated respectfully and strategically.
Advice for leaders:
Establish cross-departmental recovery teams with clear roles and shared goals.
Engage elected members early and often, ensuring they are part of the solution.
Build strong relationships with external partners, including government-appointed commissioners, auditors, and peer networks.
5. Compassionate People Management
Financial crises put enormous strain on staff. Uncertainty about job security, reputational damage, and increased workloads can lead to burnout and disengagement. Leaders must respond with compassion, recognising the human impact of the crisis and prioritising staff wellbeing.
Compassionate leadership doesn’t mean avoiding difficult decisions it means handling them with care. It involves listening, being present, and showing appreciation for the effort and resilience of teams working under pressure.
Advice for leaders:
Communicate regularly with staff, not just about the crisis but about their experience of it.
Provide access to wellbeing support, coaching, and professional development.
Recognise and celebrate contributions, even small wins, to maintain morale and momentum.
6. Governance and Accountability
Weak governance is often a root cause of financial failure. Recovery requires a renewed focus on accountability, transparency, and robust decision-making. Leaders must ensure that governance structures are fit for purpose and that scrutiny is not just tolerated but welcomed.
This includes strengthening financial reporting, clarifying roles and responsibilities, and ensuring that elected members are equipped to challenge and support effectively. Good governance is not just procedural it’s cultural.
Advice for leaders:
Review and refresh governance frameworks, including financial controls and risk management.
Ensure that scrutiny committees are well-supported and have access to timely, accurate information.
Promote a culture where challenge is constructive and accountability is shared.
7. Adaptive Thinking and Learning
Recovery is rarely linear. Plans will need to evolve as new information emerges, and circumstances change. Leaders must be agile able to pivot when needed, learn from setbacks, and continuously improve. Adaptive thinking is about curiosity, openness, and a willingness to experiment.
It also means capturing lessons for the future. Councils that recover well often embed learning into their culture, ensuring that the crisis becomes a catalyst for long-term improvement rather than a temporary fix.
Advice for leaders:
Build feedback loops into recovery planning listen to staff, residents, and partners.
Encourage innovation and experimentation, especially in service redesign.
Document lessons learned and shared across the organisation and sector.
Conclusion: Leadership That Restores Hope
As the financial landscape continues to deteriorate, more councils will face the prospect of issuing a Section 114 notice. The sector must move beyond reactive crisis management and begin building leadership capacity for recovery and renewal. This article is not just a guide for those already in crisis it’s a resource for those who may be next. By understanding the leadership qualities required to steer through financial collapse, councils can better prepare for the challenges ahead. Recovery is possible, but it depends on leaders who are ready to face the storm with clarity, compassion, and conviction.
