Latest news with #CIPFA
Yahoo
an hour ago
- Business
- Yahoo
CIPFA welcomes Fair Funding Review 2.0
The Chartered Institute of Public Finance and Accountancy (CIPFA) has responded to the Ministry of Housing, Communities and Local Government's (MHCLG) consultation on the Fair Funding Review 2.0 and Council Tax Reform. It has expressed cautious optimism about the government's commitment to reforming local government finance. CIPFA director of Public Financial Management Iain Murray said: "We welcome the Government's recognition that local government finance needs reform. The commitment to address long-standing disparities in funding allocations and simplify the complex patchwork of grants is a positive step toward greater fairness and transparency.' Murray emphasised on the need for careful implementation and 'robust data' to support the transition. The institute has acknowledged the government's efforts but warns that structural challenges persist, particularly in the allocation and redistribution of funds. The proposed reforms, including a return to a multi-year settlement and the consolidation of funding pots, have been well-received by finance professionals for providing a clearer basis for planning and accountability. However, CIPFA has raised concerns that the government has yet to address fundamental pressures, such as the statutory override for SEND (special educational needs and disabilities) high-need deficits, which has been extended to 2028 without serving its intended purpose of facilitating reform. Murray added: "Without urgent solutions to both existing and future SEND deficits, those councils grappling with unsustainable high needs costs and rapidly growing cumulative deficits may, at best, be forced to make further reductions in essential services, and at worst, risk declaring themselves effectively bankrupt." Recently, CIPFA has issued a warning in response to the Public Accounts Committee (PAC) report on local government financial sustainability., which indicates a looming financial crisis for councils across the UK. "CIPFA welcomes Fair Funding Review 2.0" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-06-2025
- Business
- Yahoo
UK Spending Review 2025 delivers 'mixed bag'
Owen Mapley, CEO of the Chartered Institute of Public Finance and Accountancy (CIPFA), has called the Spending Review 2025 a 'mixed bag'. 'Much to welcome, but long-term sustainability remains unresolved for many public services,' Mapley said in response to the UK government's Spending Review announced on 11 June 2025. Mapley noted that while additional funding for the NHS and defence was confirmed, many unprotected areas received little relief. 'For frontline services, significant pressures and concerns around long-term stability are likely to endure,' he said. Local government was highlighted as a sector set to benefit from a longer-term funding settlement. However, Mapley expressed reservations, stating: 'Serious concerns remain about the sector's overall sustainability.' He said that key challenges including funding gap for social care remain unaddressed. On the NHS, Mapley acknowledged the positive impact of increased investment but cautioned that 'the demands on these resources will be immense.' He emphasised that delivering transformation through technology and modernisation would be crucial for the NHS to achieve sustainability and support the forthcoming ten-year health plan. Mapley concluded by noting the complexity of the review, saying, 'Crunching the Spending Review numbers, and considering the multiple documents released alongside the review, may reveal a clearer picture. CIPFA looks forward to considering the details over the coming days and weeks.' Chancellor Rachel Reeves announced an additional £29bn per year for the NHS in England, alongside increased funding for defence and housing, as part of the government's spending plans extending to the end of the decade. Reeves also pledged further investment in artificial intelligence and transport projects. However, the review brought tighter budgets for some departments, with the Foreign Office and environment department facing constraints on day-to-day spending. "UK Spending Review 2025 delivers 'mixed bag'" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
BBC News
10-06-2025
- Business
- BBC News
East Sussex County Council considering specialist accountants
East Sussex County Council is considering hiring specialist accountants to help it deal with financial difficulties and potentially apply for government Nick Bennett, lead member for resources and climate change, will decide on Tuesday whether to commission a £40,000 review by the Chartered Institute of Public Finance and Accountancy (CIPFA). The council faces a potential deficit of more than £37m in the 2026/27 financial a report, officers said a CIPFA review would likely be required should the council approach the Ministry of Housing, Communities and Local Government (MHCLG) to explore options for Exceptional Financial Support (EFS). The council has not yet formally agreed to seek EFS, reports the Local Democracy Reporting Service. A council spokesperson said: "CIPFA have been approached to undertake their assurance review early, to provide the council with a report that will support the work that the council may need to undertake with MHCLG."If EFS proves not to be required, or an option, the CIPFA review will provide external assurance as to the actions the council is taking to address the financial challenges the council faces."A CIPFA document says the team would work with the council to draw up an improvement plan after say the review's findings would also be used to inform the county council's annual budget-setting proposal comes amid some significant financial uncertainty for the report said the upcoming comprehensive spending review and potential changes to grant funding could impact the authority's could help by allowing the council to borrow money to fund everyday services - something councils are not usually allowed to councils can only borrow money for long-term investments, like building schools or buying equipment, not to cover day-to-day costs like wages or energy bills.
BBC News
24-03-2025
- Business
- BBC News
Experts identify 45 financial risks at Somerset Council
An independent report into Somerset Council's precarious financial position has identified 45 key risks – 32 of which have been given the highest risk include council reserves falling below £30m and delays to the council's restructuring programme. The report by the Chartered Institute of Public Finance and Accountancy (CIPFA) also acknowledged the ongoing pressure from years of frozen council taxes or low increases under predecessor leader of Somerset Council, Bill Revans, said: "The report concurs with our own understanding of the considerable work that lies ahead and the importance of further transformation." Report backdrop The report was commissioned by the government as a condition of the "exceptional financial support" it has given the support includes giving the council permission to raise council tax by 7.49% in the upcoming financial year, and allowing it to sell off buildings to pay for day-to-day November 2023, the council declared a financial emergency, saying it was at risk of going effectively bankrupt unless more than £100m of savings could be found for the 2024/25 financial authority voted through a further £66m package of cuts and savings for its budget for 2025/26, including 555 staff job losses. Experts' verdict CIPFA outlined recommendations to counter the 45 risks it public finance body said further "exceptional financial support" may be needed to balance Somerset Council's budget for 2026/ support would be needed if the Liberal Democrat-led local authority proves "unable to deliver its financial goals" and savings through transformation and devolution of services to town and parish councils, the accountants report called for "rapid mobilisation and a need to increase the pace and co-ordination of the actions that are needed to achieve this".But it also praised the council's "well conceived" and "well led" transformation programme, adding that it "deserves to succeed".However, it pointed out that the programme has led to "poor morale" within the council's workforce and warns that "further steps" are needed to ensure the remaining staff are properly supported.A CIPFA spokesperson said: "The management of debt generally, which is highly distributed across the council, needs a more coordinated approach and should be more closely monitored."Governance in the council generally is satisfactory but capable of improvement in some areas."The adult social care service is being led and managed insightfully, has received significant additional resources, and confronts national rather than local challenges, which are being approached with pragmatic good sense."Children's services remains on its improvement journey."Concern was also raised in the report about the reduction of the council's available reserves. Criticism of councils past Most damningly for the Conservatives, which controlled the county council between 2009 and 2022, the report concludes that "a significant proportion" of the current council's budgetary woes has been caused by the freezing of council tax for six consecutive years from 2010. This "led to funding shortfalls in each future year in perpetuity", the report freezes and low council tax rises were described as "poor decision making".Liberal Democrat-led Somerset Council was formed in April 2023, replacing Somerset County Council and the four district councils of Mendip, Sedgemoor, Somerset West and Taunton, and South reorganisation was based around the One Somerset business case, put forward by Conservative former county council leader David Fothergill and approved by Boris Johnson's government in July 2021. The CIPFA report said it "appears likely that the business case" for creating one authority for Somerset "may have underestimated" how long it would take for the promised financial saving to materialise. Of the originally promised savings of £18.5m, £8.8m has been achieved to date, with the remainder on track to be achieved by the end by April 2026, as part of the council's transformation Fothergill, still a Conservative councillor but now part of the opposition, said the criticisms of the previous council were unfair. He said: "For six years, in the last 10 years, we have not required that additional council tax take. "It is a complete fallacy to say that is the root of the problem. "The root of the problem is the lack of transformation [at the current council] and the lack of transition."He said that when he was in charge, he managed to set balanced budgets for six years, while keeping council tax low or frozen. Mr Fothergill continued: "It's a fallacy to think that council tax should be increased just to increase reserves, when actually we were going through a period of severe austerity and people needed to have relief on their day-to-day expenses."He also disputed the assertion that the timescales for delivering the savings of having one council for Somerset were under-estimated. The councillor said the Lib Dems did not work fast enough when they took control. Mr Revans, the Lib Dem leader of Somerset Council, told BBC Somerset: "We are committed to transparency and so welcome this very detailed report that recognises the significant effort being made to move the council towards sustainability at a time of huge financial pressure across local government."He said the council also "welcomes an acknowledgment of the savings made so far" and of the progress towards sustainable spending for adult social services and children's services.
BBC News
17-03-2025
- Business
- BBC News
Bradford Council making 'good progress' on finances
An independent review of Bradford Council's finances has said the authority has made "good progress" – but financial pressure is "likely to be in play for a number of years".Last year the government agreed "exceptional financial support" for the council, meaning the authority can borrow money to fund its came at a time when the council faced bankruptcy due to its huge budget part of this process, the Chartered Institute for Public Finance and Accountancy (CIPFA) carried out a review of the council's finances, and issued a "best value notice". This notice meant there were concerns with how the authority was operating and required Bradford Council to act "to assure the government that the authority is making arrangements to secure continuous improvement".The Local Democracy Reporting Service reported that this notice has been lifted following the latest inspection by report said: "The council has made good progress towards the key recommendations and the addressing of key risks since the 2023 review." It highlighted the appointment of Dr Lorraine O'Donnell as chief executive as helping to reset the "fractured relationship" with the Bradford Children's and Families Trust, which was set up after Bradford Council was stripped of control of its children's services in the wake of the murder of Star Hobson and consecutive inadequate Ofsted ratings."It is without doubt that the underlying characteristics of the council have changed in the last 12 months," the report read."The new CEO (and interim S151 Officer) have brought focus, rigour, pace, attention to detail and a formalised set of programmatics that have set the organisation on a different course."There is a laser focus on addressing the underlying aspects of financial fragility in Bradford."The report said that Bradford, which is one of the largest metropolitan districts in England, needed to downsize to best serve the it commended the council for changing its culture since its last CIPFA review in 2023 - as well as becoming the UK City of Culture 2025 and securing the investment that came with "a good awareness of the drivers and financial challenges, these factors are likely to be in play for a number of years", the report followed the council voting to raise council tax by 9.9% as it faces rising costs and debts which are expected to reach £1bn by has also approved cuts worth £42m in the next financial Council leader Susan Hinchcliffe said: "We're still in a very challenging financial position following 14 years of central government funding cuts coupled with the growing cost of children's and adult social care." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
