“Survey reveals another section 114 notice [council insolvency] expected within a year”

Some councils are taking on riskier investments with consequent higher returns to maximise income – risky indeed in the current uncertain financial climate. As with those councils that bought (non-local) shopping centres as investments … which will need very savvy auditors to monitor …

“Three quarters of senior finance officers expect at least one other council to issue a section 114 notice in the next 12 months, according to a Room151 survey.

Last month, Northamptonshire County Council’s director of finance issued a 114 notice imposing immediate spending controls on the authority.

Room151’s Local Government Finance & Treasury Current Affairs Survey, sponsored by investment manager CCLA, found that more than half of respondents expect one or two more notices in the next year.

Presenting the findings to Room151’s LATIF north conference in Manchester this week, John Kelly, client director at CCLA, said that a further 20% expect between three and five further section 114s, with 3.5% expecting between five and 10.

However, when asked about their own council, 56% of treasury officers said they were either confident, or very confident, of financial sustainability.

Kelly said this result “doesn’t suggest there is any panic or any need to get unduly worried at present”.
Elsewhere in the research, 36% of those surveyed said that they had begun to invest in higher yielding instruments, due to the current funding squeeze, compared to 30% who said there had been no impact. …”

http://www.room151.co.uk/treasury/survey-reveals-another-section-114-notice-expected-within-a-year/

One thought on ““Survey reveals another section 114 notice [council insolvency] expected within a year”

  1. Can anyone point to a public service that is NOT currently in crisis?

    NHS – every hospital in crisis, GP services in crisis, mental health in crisis
    Social care – don’t get me started
    Prisons – several prisons criticised for being unacceptable
    Local government about to go bust
    Education – schools cutting staff and still overspending

    The only groups not in crisis are:

    MP’s personal finances – they have had a 10% salary increases since Tories came back to power
    Tory donors – the top 1% of UK earners are earning 3x more than they did in 1979 when Margaret Thatcher came to power.

    The UK is going down the plughole, and we all know whose fault it is.

    Like

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