In response to the recent IFS report on local authority finances, Rob Whiteman, CIPFA CEO said: "CIPFA welcomes the IFS report on local authority finances. While the short-term picture may appear sustainable, we remain concerned with the medium and long-term outlook for local government finances, which largely remains unsettled.
"Local authorities are still assessing the lasting impacts of COVID-19 on their finances and communities, and there will inevitably be more costs to bear in the future while the resource base is evidently in need of reform.
"The sector has also seen S114 notices issued in recent years, which relate to the reality that reserve levels are very low in some areas. We must be careful to not fall into the previous traps of the Pickles era where reserves and longer term resilience were misunderstood.
"It is important to not let this short-term good news detract from the much-needed focus on the long-term financial health of local authorities."
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CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA shows the way in public finance globally, standing up for sound public financial management and good governance around the world as the leading commentator on managing and accounting for public money.