Independent reviewers for councils requesting financial support

The government has appointed independent reviewers to undertake assurance reviews into eight councils following decisions earlier this year to provide 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 decision to provide exceptional financial support packages to Bexley, Copeland, Eastbourne, Luton, Peterborough, Redcar & Cleveland, Slough and Wirral councils, subject to an external review.

The government says that the external assurance reviewers will provide a detailed assessment of each councils’ financial position and management, making recommendations where necessary of how each council can take action to improve.

The external reviews will provide an assessment 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 the financial year 2021-22, and any other matters of concern at the authorities.

Local Government Minister Luke Hall said: “The government has committed over £35 billion to help councils support their communities and local businesses during the pandemic. Even with the considerable support already provided there will be individual councils with unique circumstances which, in some cases, has been exacerbated by poor financial management on their part. These reviewers will ensure each of the councils have plans in place so that they are financially sustainable, minimising the need for further government support and working in 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 has been worsened significantly as 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 be working with MHCLG to support these authorities and provide recommendations for how they can improve financial management and governance locally. We will be 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 important signal to other councils experiencing financial challenges that help is available.”