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The Department for Levelling Up, Housing and Communities (DLUHC) has appointed CIPFA to lead targeted external assurance reviews for independent assessment of councils’ financial position and wider governance and leadership.
CIPFA will be supported by the Good Governance Institute and Grant Thornton UK.
The reviews will aim to deliver financial and governance assessments of selected local authorities and be presented to DLUHC to inform assessments of the council.
CIPFA said the work will help to “establish a complete picture of the context, circumstances, risks and issues the local authority under review may be experiencing and provide an evidence base for what further actions may be required”.
Rob Whiteman, CIPFA CEO, said: “Soaring inflation, economic uncertainty, increased service demand and the aftereffects of the pandemic have put significant pressure on all aspects of the public sector over the last two years. Local authorities are no exception and are facing some tough challenges as they continue to deliver their essential services in very difficult circumstances.
“I’m really pleased that CIPFA has been chosen as the lead reviewer, which is a testament to our expertise around financial management in local government. As ever, we remain committed to the public sector, and I hope that these reviews will bring about positive outcomes for those involved.”
Phillip Woolley, partner and head of Public Sector Consulting at Grant Thornton, added: “The financial sustainability of many councils remains precarious, and local leaders are facing a myriad of challenges, including double-figure inflation, rising interest rates and growing demand for services.
“This work represents an important step in ensuring there is a collective plan across both central and local government for helping those who are most at risk.”
Professor Andrew Corbett-Nolan, Good Governance Institute CEO, concluded: “Governance should be a productive activity, and good governance overall will be key to the recovery of local authorities which are financially challenged.
“The reviews will help local authorities establish a platform to build on and enable them to better service their local communities, whilst at the same time dealing with pressing financial issues.”
