The state of public finances will only ‘get worse’ if urgent action is not taken, the Chartered Institute of Public Finance and Accountancy (CIPFA) is warning.
In its pre-election manifesto, the institute is calling for the ‘radical’ reform of public financial management, setting out key actions to ensure the long-term stability of public finances.
The manifesto calls for the replacement of the Barnett formula, a shift towards income related benefits, a legal requirement for regular property tax revaluations and the co-payment of some services.
CIPFA CEO, Rob Whiteman, said: ‘The reality is that the ways we plan and implement policies and decide upon how we manage our resources are no longer fit for purpose.
‘The system has become broken over many years as it has struggled to manage the increasingly short sighted political cycle which places more weight on success of an announcement in the media, than on the long-term interests of country and its public finances.
‘If we are to see a long-term sustainable financial future for the UK we need to radically reshape the way we run our public services and reshape our management of the public finances.’
