Dan Peters 22 January 2021

More councils will be forced to issue Section 114 notices, MPs warn

More councils will be forced to issue Section 114 notices, MPs warn image

More councils will ‘soon be unable to balance their books and be forced to issue Section 114 notices,’ the influential Public Accounts Committee (PAC) has warned.

It comes after Croydon LBC issued a second Section 114 notice - imposing restrictions on all new, non-essential spending – last month, with the council’s Section 151 officer Lisa Taylor again ruling it would not meet its legal duty to balance its 2020/21 budget without urgent action.

Up to 12 other councils are understood to have made capitalisation requests to the Government and are waiting for decisions.

A PAC report on the whole of government accounts for 2018/19 published today said the Government’s ‘exposure as the funder of last resort’ meant the ‘precarious financial position’ of local authorities presented a ‘significant risk’.

PAC chair Meg Hillier said: ‘The Treasury has a worryingly laissez faire attitude to what now presents a significant risk to the whole of government.’

The PAC report also said the delay in the completion of audits of local government bodies had already led to a ‘lower quality picture of the financial performance and position of the UK public sector than in the previous year’.

With its £5.5bn extra funding for local government next year the Spending Review may have delivered more than expected – though this won’t be enough to reverse the cuts since 2010, argues Heather Jameson.

SIGN UP
For your free daily news bulletin
Highways jobs

Fostering Team Leader

Royal Borough of Greenwich
£49827 - £52866 per annum
FOSTERING TEAM LEADERRoyal Greenwich Fostering Service is a vibrant and exciting place to work. We are an innovative Fostering Service that is providi England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Network and Programme Manager – Highways & Drainage

Neath Port Talbot County Borough Council
£41,881 - £44,863 per annum (Grade 11)
We are looking for an experienced, motivated and enthusiastic person to manage our Network Management and Streetworks teams. Neath, Neath Port Talbot (Castell-nedd Port Talbot)
Recuriter: Neath Port Talbot County Borough Council

National Marine Park Interim Chief Executive

Plymouth Sound National Marine Park
£80,000 to 90,000 dependent on experience
We are now seeking to appoint an inspirational and entrepreneurial interim Chief Executive, on an initial 2 year fixed term appointment, to... Plymouth, Devon
Recuriter: Plymouth Sound National Marine Park

Senior Accountant x2

Islington London Borough Council
£39,462 - £45,594 per annum
There are two roles currently being advertised, one working with our Resources finance team, and one with our Housing and Public Health finance team. Islington, London (Greater)
Recuriter: Islington London Borough Council

Team Leader Building Works

Bedford Borough Council
£38,890 - £43,857 per annum
Building Services are seeking an enthusiastic Team Leader to oversee the Building Works team direct labour unit. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue