Latest news with #CIPFA
BBC News
4 days ago
- Business
- BBC News
Political row erupts over Bedford Borough Council's finances
A council is facing a claim that it is effectively bankrupt following a review of its finances.A study of the financial position of Bedford Borough Council by the Chartered Institute of Public Finance and Accountancy (CIPFA) has highlighted a number of leader Henry Vann, a Liberal Democrat, said he had been "told that Bedford Borough Council is in effect bankrupt".But Conservative group leader Graeme Coombes said "Bedford Council is not bankrupt" and it was "a staggering attempt by... Vann to mislead the public". The CIPFA review found that the council needed "a robust, credible strategy" to secure its longer-term financial future and that it needed to be "prepared to act boldly and make 'politically unattractive' decisions", reports the Local Democracy Reporting report highlighted a projected overspend for the current financial year that could deplete the authority's entire general reserve, and it added that "we believe the council is already in S114 territory".An S114 means a council's forecast spending exceeds its income, and it cannot meet its financial obligations without drastic measures. It is a formal notice that freezes all non-essential spending.A spokesperson for the authority said it had "commissioned CIPFA to undertake a review of the council's financial resilience and financial management".They added that it "reflects a shared commitment from the corporate leadership team and cabinet to ensure the long-term sustainability of the organisation".The council said the report confirmed it was facing financial challenges, which were "driven by high spending on temporary accommodation and growing pressures in children's services and adult social care".An improvement plan is being prepared to "return the council to a sustainable position". The authority is under no overall control but its cabinet is made up of nine Conservative members – including the mayor, Tom Wootton – and an report has sparked a political row with the Lib Dems, who are the largest opposition said: "It is deeply sad that, despite our repeated warnings, we now see the Conservative mayor's decisions leading us to this disastrous point."He added that he "urgently called on the mayor to produce a recovery plan" and "cancel wasteful spending that does not protect residents".However, Coombes said: "The CIPFA report confirmed the root causes of Bedford's financial situation are not just recent, and stem from over a decade of financial recklessness and poor governance by the previous mayor, in whose cabinet Vann served."He added that "Vann's fingerprints are all over the current financial predicament and it's Bedford residents who are paying the price". Follow Beds, Herts and Bucks news on BBC Sounds, Facebook, Instagram and X.
BBC News
12-07-2025
- Politics
- BBC News
MPs call for help over Lincolnshire Police 'bankruptcy' fears
Seven MPs have written to the Home Office to share "bankruptcy concerns" over the financial situation of Lincolnshire letter states the force is at risk of having to issue a Section 114 notice, which would mean it may have to declare itself effectively additional support, the MPs said it would result in planning for a reduction of 190 police officers and 180 police staff from Home Office has been approached for comment but previously told the BBC it had increased the force's budget to £174.5m - a rise of 6.2%. In the letter, the MPs called for an urgent meeting with Home Secretary Yvette Cooper to "discuss how the matter could be resolved".The findings came from independent experts at the Chartered Institute of Public Finance and Accountancy (CIPFA), the letter accessed the force's efficiency and warned that "without additional support or fundamental change in funding arrangements, the force is at risk of having to issue a Section 114 notice".The MPs said this would "mark the first time a police force has ever been forced to do so".It added that this would leave "communities in Lincolnshire unpoliced and unsafe".The letter was signed by Dr Caroline Johnson, Sir John Hayes, Sir Edward Leigh, Victoria Atkins, Gareth Davies, Alicia Kearns and Richard Police and Crime Commissioner (PCC) for Lincolnshire has been approached for comment. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
South Wales Argus
03-07-2025
- Business
- South Wales Argus
Natural Resources Wales board member is reappointed
Deputy first minister and cabinet secretary for climate change and rural affairs, Huw Irranca-Davies, announced that Karen Balmer will return after the resignation of Kathleen Palmer. Mr Irranca-Davies said: "I am pleased to announce that I have directly appointed Karen Balmer as a temporary board member for the interim period July 1 to March 31, ahead of undertaking a full public appointment exercise." Ms Balmer will earn £350 per day for a maximum of 48 days per year, pro rata for the term of appointment. She previously served on the board from November 2015 to March 2023. Mr Irranca-Davies added: "Karen is a CIPFA qualified accountant with over 35 years' financial experience, along with extensive human resources and governance experience. "Natural Resources Wales' board has accountability for ensuring Natural Resources Wales exercises its legislative functions appropriately and effectively. "The board is also responsible to Welsh ministers for the ways in which it delivers against the ministerial remit letter. "I thank Kathleen for delivering significant contributions during her time as a Board member and for her commitment to Natural Resources Wales' work particularly in her role as chair of the board's audit, risk and assurance sub-committee."
Yahoo
23-06-2025
- 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.
