CIPFA responds to suggestions of budget shortfall


The Chartered Institute of Public Finance and Accountancy (CIPFA) has responded to a report which suggests a 29% shortfall between revenue and spending pressures by 2020.

The report, published by the Local Government Association, points to the rising cost of adult social care due to an ageing population and the rising costs of other statutory responsibilities of councils such as social services, waste collection and concessionary travel.

The report shows that unless urgent reform is introduced, a £16.5bn funding shortfall will exist between the amount of money available to councils to provide services and the predicted cost of maintaining them at current levels.

Alison Scott, CIPFA’s Assistant Director for Local Government, commented,

“It will be no surprise to local government finance officers that council finances are under pressure, there is a particularly urgent need to tackle the rising costs of care.

“We have yet to see the Government’s full response to the Dilnot Commission’s proposals on the funding system for care and support in England. And, it is important to emphasise that its proposals do not provide a solution to the long term funding issues but merely address the contributions individuals should make towards their owns costs of care.”

CIPFA’s Annual Conference from 3-5 July will address a number of the concerns raised in this report, including a Chatham House event for public sector Chief Finance Officers to review the current and forecast position of the UK’s public finances, government spending and the nature and scale of the challenges and risks which lie ahead.



CIPFA Press Office

T: 020 7543 5787



CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services. This includes the development of local professional qualifications in African countries like Lesotho and Nigeria and in Europe in post conflict states in the Balkans.