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The Chartered Institute of Public Finance and Accountancy (CIPFA) has called for a “transformative” overhaul of governance standards and support mechanisms in the UK public sector. In a response to the Committee on Standards in Public Life’s consultation, the industry body highlighted an “urgent need for decisive action to bolster accountability and restore public trust”.
Ahead of the general election, CIPFA has called on all public bodies to safeguard stability with a particular focus in several key areas.
This includes governance failures. Amid “dysfunctional relationships between senior officers and elected representatives, insufficient seniority among key officers, and political cycle constraints”, CIPFA emphasised the need for local authorities to “confront these issues head-on”. It is advocating for empowered internal mechanisms such as audit committees and scrutiny, supported with training and resources.
In addition, it has called for the Nolan Principles to be integrated across all aspects of public sector governance, underpinning member codes of conduct and professional standards.
Meanwhile, regarding data-driven risk management, CIPFA’s Financial Resilience Index and the Prudential Code for Capital Finance enables public bodies to analyse risks, model scenarios, and make informed decisions. Effective data usage further requires overcoming barriers such as outdated IT systems and ensuring data privacy and interconnectivity, CIPFA said.
Finally, the industry body called for “trust, transparency and effective oversight”. According to the group, senior officers and elected representatives should receive comprehensive support and training in order to foster a culture where any concerns can be safely raised. A strong standards regime, combined with peer support and mentoring, is “crucial” to counteract pressures and promote continuous improvement, it said.
Diana Melville, CIPFA governance advisor, said: “At a time when public trust in service delivery is fragile, compounded by budget constraints and rising demand, a targeted focus on governance and accountability is essential. Through our guidance, CIPFA encourages a culture of transparency, integrity and accountability.
“Ensuring good governance and harnessing data-driven risk management is needed now more than ever. Backed by public sector finance experts, these initiatives provide the stability that local government needs to guide itself through the incoming period of political change.”
