“English councils warned about use of reserve cash”

Somerset, which oversees funds being spent by our Local Enterprise Partnership, is one of the councils mentioned in this BBC article.

“Some councils in England have been warned they risk running out of cash reserves if recent spending continues.

Analysis by the BBC has identified 11 authorities the Chartered Institute of Public Finance and Accountancy (Cipfa) said would have “fully exhausted” reserves within four years unless they topped them up.

The Local Government Association said councils faced “systemic underfunding”.

The government said councils were responsible for managing their funds.
Councils have faced cuts to their government funding and rising demand for services such as social care, while MPs have warned children’s services are at “breaking point”.

Cash reserves – money held back for specific projects or emergencies, such as flooding – are seen as a measure of financial security.

Between them the 152 major councils in England had £14bn in reserve in March 2018, £500m more than the year before but £400m less than in 2015.

The BBC analysis of government data follows work by Cipfa, which published a “resilience” index of councils, but stopped short of naming those it warned were depleting reserves the fastest.

The warning was based on the latest data available, comparing reserves as of March 2018 with March 2015.

The analysis reveals which 11 of the 152 major English councils have used so much of their reserves since 2015 that Cipfa said they would run out within four years if spending patterns continued.

The research comes ahead of Wednesday’s Panorama, which reveals the failings of the social care system as the population gets older and more people need help with day to day living. …”

https://www.bbc.co.uk/news/uk-england-48280272

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