Heather Jameson 24 July 2018

Northamptonshire CC issues second emergency spending ban

Northamptonshire CC issues second emergency spending ban image

Troubled Northamptonshire CC has issued a second Section 114 notice in a bid to regain control of its ‘truly perilous’ finances.

The move comes as the council revealed it is facing a potential budget shortfall of £60m-70m in the current financial year with no plan as yet as to how to balance the books.

Council leader Matthew Golby said the financial situation ‘remains critical’ at the beleaguered council, which is currently subject to a Government intervention.

‘The spending controls we have in place are vital to ensure we are focusing our limited funding on only the most essential services,’ Cllr Golby said.

‘We remain committed to doing everything we can to identify the savings required to reach a more stable financial position whilst ensuring those in our communities at risk of harm are protected.’

Finance commissioner, Brian Roberts, said: ‘We are fully supportive of the issuing of this Section 114 which underlines the truly perilous state of Northamptonshire CC’s finances.’

‘We have been very clear that we did not arrive in Northamptonshire with additional money and that to put itself on a secure financial footing very difficult decisions will need to be taken. It is clear the time for these decisions is now.

‘It will require a determined response from the council to do everything in its power to address this significant financial shortfall, while protecting vulnerable people. We will ensure that such a response is made.

‘All that is required of the council is that it lives within its means, just like every other council. This is harder than it should be given the over-expenditure of recent years but not impossible.’

An extraordinary meeting of full council will take place on 1 August to discuss the s114 notice and the financial path ahead.

Chief executive of the Chartered Institute of Public Finance and Accountancy (CIPFA), Rob Whiteman, said other councils should learn the lessons of Northamptonshire to avoid financial mismanagement elsewhere.

He said: ‘The NAO’s most recent financial sustainability report points out that 10% of upper-tier authorities are similarly vulnerable to financial failure. That could be more than twenty councils at risk along with the essential services for several million citizens. Understanding and acknowledging the scale of pressures, and responding early, to financial stress is essential to avoid seeing more councils fail.’

SIGN UP
For your free daily news bulletin
Highways jobs

Service Manager - Children in Care

Pembrokeshire County Council
£46,514 - £48,412
The successful candidate will need to be able to manage a large number of competing and at times conflicting priorities, whilst... Pembrokeshire (Sir Benfro)
Recuriter: Pembrokeshire County Council

Neighbourhood Services Divisional Manager

Northumberland County Council
£60,253
You will provide professional and technical advice on all Neighbourhood Services functions. As an effective leader you will coordinate and manage... Northumberland
Recuriter: Northumberland County Council

Senior Policy Planner

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,643 – £45,704 depending on skills
Are you looking for working arrangements that enhance your work-life balance? London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Strategic Technical and Compliance Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£42,656- £51,690
You will need to be a good communicator, well organised, have excellent written, numerical and analytical skills and sound IT abilities. London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Director - Children’s Services

Wigan Council
Competitive Salary
Currently seeking a new Director of Children’s Services who can deliver our ambition to be an outstanding council for children’s services. Wigan, Greater Manchester
Recuriter: Wigan Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how public sector organisations can unlock the hidden value in their land, and why a new approach to construction could help boost the outcomes of the Government’s One Public Estate programme.

The December issue also considers why learnings from ancient cities could provide the key to promoting wellbeing in the modern built environment. It also contains a case study on how the London Borough of Westminster has provided high quality care for the elderly alongside a block of luxury apartments.

Register for your free digital issue