Rob Whiteman CBE, CIPFA CEO, said:
"CIPFA welcomes today’s report from the National Audit Office and the insight it brings to council activity around commercial borrowing.
"Councils should, and do, have the flexibility to take their own investment decisions; provided those decisions are taken in line with service objectives and that they are prudent, sustainable and meet their duty to provide value for money to taxpayers.
"While the avoidance of all risk is neither appropriate nor possible, councils should have regard to the CIPFA Prudential Code to ensure they do not take on an inappropriate amount of risk when exercising their powers.
"There remains a question for the sector about what happens in the few cases where councils do not have regard to the Code, which the government will likely address at some point."
For further information please contact the CIPFA press office on T: 020 7543 5647 or E: firstname.lastname@example.org
Notes to Editor:
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.
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