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

Marketing and Recruitment Officer (Adoption)

Bolton Council
£28,227
You will be passionate about promoting adoption to attract prospective adopters. Bolton, Greater Manchester
Recuriter: Bolton Council

Assistant ICT Solutions Partner

Bolton Council
£31,894
At Bolton Council we have an excellent opportunity for someone to join the team. Bolton, Greater Manchester
Recuriter: Bolton Council

Head of Technology

Bolton Council
£62,413
Are you a senior ICT professional looking to make your next career move. Bolton, Greater Manchester
Recuriter: Bolton Council

Senior Business Change Officer

South Derbyshire District Council
£28,226 - £30,984
A fantastic opportunity to join an ambitious and transforming Council. Swadlincote, Derbyshire
Recuriter: South Derbyshire District Council

Service Director - Community Development

South Gloucestershire Council
From
£84,437
Recuriter: South Gloucestershire Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.