Independent reviewers for councils requesting financial support
The government has appointed independent reviewers to undertake assurance reviews into eight councils following decisions captured to supply exceptional financial support to these authorities.
The Chartered Institute of Public Finance and Accountancy (CIPFA) has been formally appointed to undertake the financial element of these external assurance reviews.
This follows a choice to provide exceptional financial support packages to Bexley, Copeland, Eastbourne, Luton, Peterborough, Redcar & Cleveland, Slough and Wirral councils, susceptible to another review.
The government says that the external assurance reviewers will give you an in depth assessment of every councils’ financial position and management, making recommendations where necessary of how each council may take action to enhance.
The external reviews will provide an exam of a council’s financial management and management of risk; deliverability of savings plans and efficiency in delivering services.
Any recommendations from these reviews will inform the Local Government Secretary’s decisions on exceptional financial support for that financial year 2021-22, and any other matters of interest at the authorities.
Local Government Minister Luke Hall said: “The federal government has committed over £35 billion to assist councils support their communities and native businesses throughout the pandemic. Despite the considerable support already provided you will see individual councils with unique circumstances which, in some cases, continues to be exacerbated by poor financial management on their own part. These reviewers will make sure each of the councils have plans in position so they are financially sustainable, minimising the need for further government support and dealing within the interests of the communities they serve.”
Dan Worsley, CIPFA COO, said: “The financial position of many local authorities has been precarious for some time, but continues to be worsened significantly because they have grappled with the impact of Covid-19 on their communities and their finances. It is no great surprise that some councils have found themselves in difficult waters.
“The CIPFA Solutions team is pleased to work with MHCLG to support these authorities and supply strategies for how they can improve financial management and governance locally. We are supported in this work by Grant Thornton UK LLP and Peopletoo. As committed advocates for the public sector, we would hope this acts as an essential signal with other councils experiencing financial challenges that help can be obtained.”
