CIPFA consulting on councils' financial resilience

posted on 03 July 2018, updated on 03 July 2018

CIPFA is due to release a consultation on its plans for a financial resilience index. Its aim is to offer reassurance to councils that are financially stable as well as noting where some authorities can improve their financial resilience.

CIPFA is proposing to use a range of indicators to come to its conclusions, including the rate at which a council is depleting resources, its level of resources generally and of borrowing. Demographic pressures such as older populations contributing to increased social care spending will also be considered. The index would be published annually and available in the public domain.

CIPFA is hoping to produce the first ratings in the early autumn this year, pending the consultation period over the summer. The institute believes that this proposal will be useful for professionals in the sector given the growing financial pressures on councils.

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