IRRV Alert - week ending 5th February
News
Consultations
Reports
Evidence session on local government financial sustainability and section 114 notices (5 February 2021)
Evidence session on local government financial sustainability and section 114 notices
5 February 2021
The Housing, Communities and Local Government Committee will hold an evidence session to examine local authority financial sustainability and the section 114 regime on Monday 8 February when it takes evidence from representatives of the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Government Association.
- Watch Parliament TV: Local Authority Financial Sustainability and the Section 114 Regime
- Inquiry: Local Authority Financial Sustainability and the Section 114 Regime
- Housing, Communities and Local Government Committee
Section 114 notices are the mechanism through which local authorities report that they are unlikely to achieve a balanced budget for the financial year. In November, Croydon Council became the second council in 20 years to issue a notice this year due to severe ongoing financial challenges and potential budget shortfall of £66 million. It is feared that other local authorities in England are in a similar position due to the additional challenges of the Covid-19 pandemic on already stretched resources. There are also fears that the commercial and investment strategies of some local authorities have caused further difficulties.
Purpose of the session
In this session, the Committee will assess the scale and depth of financial sustainability issues within local authorities and the likelihood of further Section 114 notices. It will also examine the effect of commercial investments, the impact of Covid-19 and the role of central government in ensuring financial sustainability and avoiding negative outcomes.
Witnesses
Monday 8 February - remote participation by witnesses and Committee members
At 4.00pm
- Rob Whiteman, CEO, Chartered Institute of Public Finance and Accountancy (CIPFA)
- Cllr Richard Watts, Chair of Resources Board, Local Government Association (LGA)