Laura Sharman 13 April 2017

Cash reserves unable to meet cost of voluntary mergers, warns CIPFA

Councils will be unable to cover the costs of voluntary mergers in Wales using their reserves, the Chartered Institute of Public Finance (CIPFA) has warned.

In its submission to the Welsh Government, CIPFA said there has been no consideration about how potential council mergers will be funded, or whether the benefits will outweigh the costs.

It found that Welsh councils held £196.5 in reserves in 2015, which is more than £70m short of the estimated cost of the merger process.

‘Council mergers could help Welsh local authorities streamline resources and boost performance,’ said Don Peebles, head of devolved nations at CIPFA.

‘However, it is important that the financial and social benefits of mergers must be compared against upfront costs of reorganisation, which if funded from reserves alone, could reduce the ability of local authorities to protect themselves from future risks.

'By taking stock of the costs in the context of the budgetary pressures, the Welsh Government will be able to fully assess whether plans will ensure the long-term sustainability of services.'

SIGN UP
For your free daily news bulletin
Highways jobs

Tea Time Club Assistant

Durham County Council
£24,027 pro-rata
Tea Time Club Assistant  Grade 1 £24,027 pro-rata Permanent 10 hours per week Required from September 2025 Would you like to work with a group of won Durham
Recuriter: Durham County Council

Licensing Assistant

Durham County Council
£26,403 £28,598
The Community Protection Service is looking for 2 Licensing Assistants to join the Business Compliance Team    1 x Temporary for 1 year 1 x Temporary Durham
Recuriter: Durham County Council

Lunchtime Supervisor

Durham County Council
£24,027 pro rata
Lunchtime Supervisor  Required from 1st September 2025 Grade 1    £24,027 pro rata Permanent We are seeking to appoint a Lunchtime Supervisor to join Durham
Recuriter: Durham County Council

Child Protection Chair (Registered Social Worker)

North East Lincolnshire Council
Up to £48,710 dependent upon experience
We are seeking an Child Protection Chair who is a registered qualified and experienced Social Worker. North East Lincolnshire
Recuriter: North East Lincolnshire Council

Organisation and Service Designer

North East Lincolnshire Council
NJC34 £43,693
If you’re someone who can blend creative storytelling to inspire customers, staff and leaders North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner