Heather Jameson 03 February 2018

County council imposes an emergency spending ban

Northamptonshire CC’s director of finance has issued a section 114 order, calling a halt to spending at the cash-strapped authority. 

In a statement, the council said: ‘The notice has been served in light of the severe financial challenge facing the authority and the significant risk that it will not be in a position to deliver a balanced budget by the end of the year.’

The order bans all new expenditure, aside from spending on statutory services for safeguarding vulnerable people and staff pay. 

Conservative-run Northamptonshire warned the Government as early as 2013/14 that it was facing difficulty.

According to estimates produced for the Treasury, the council faced a £157m cash shortfall between 2006 and 2020 before damping. 

A report, entitled Mind the Gap, concluded: ‘The evidence is clear. Northamptonshire has been hit hard by recent funding mechanisms and has actually been penalised for achieving the growth that is so crucial to the recovery of the UK.

'The key question is whether Northamptonshire CC can sustain these cuts in the long-run.’

Chief executive of the Chartered Institute of Public Finance and Accountancy, Rob Whiteman, described the move as ‘rare’.

Tweeting in the aftermath of the announcement, Mr Whiteman said there had not been any substantial s114 notices for nearly 20 years, when Milton Keynes and Hackney issued them. 

Mr Whiteman tweeted: ‘CIPFA has advised MHCLG [the Ministry of Housing, Communities and Local Government] more are likely in the coming years as 40% council savings since 2010 take hold and reserves deplete.

‘CIPFA has advised for some time that this position would ensue without stronger financial management.

'Nonetheless we are sorry to see the first use of s114 in 20 years because the later it has been left unresolved the harder it is to now recover @mycountycouncil [Northamptonshire] finances.’

Last month, local government secretary Sajid Javid ordered an inspection of the council’s finances amid growing concerns over its financial predicament.  

Former Hackney LBC chief executive Max Caller was called in to undertake the review. 

Councillors are due to address the full implications of the s114 notice at a full council meeting on 22 February.

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner