It’s no secret that many local authorities are severely struggling under huge financial pressures.
A small number of local authorities recently requested exceptional financial support from the Department for Levelling Up, Housing and Communities for 2020-21 and 2021-22. The requests for aid were to help balance budgets by raising capital borrowing to support revenue expenditure made during the COVID-19 pandemic.
Sadly, the financial challenges facing these councils are not always solely attributable to dealing with Covid. In some instances, there may have been ongoing problems with delivering a realistic and viable financial strategy, predating the pandemic. This inability to address the immediate financial challenges that a council faces can impact quickly on the ability to deliver services, and expose it to a higher level of financial risk too.
How can C.Co help alleviate financial distress?
At C.Co, once we have assessed the scale of the problems facing our client, we provide them with achievable solutions, ranging from realistic savings plans to substantial transformation programmes. Our solutions give our clients confidence and provide assurance to their stakeholders too.
Our consultants have worked with many councils across the UK to improve sustainability and financial resilience now and for the future. Our insights can help highlight the cause of financial difficulties and turn the tide to encourage financial recovery across the sector.
We’ve found that strengthening financial sustainability, governance and oversight is the key to being an effective organisation.
Just some of the ways in which we can help alleviate financial distress include:
- Developing a more realistic Short, Medium and Long-Term Financial Strategy (MTFS) that better reflects the challenges facing councils.
- Review services to determine whether they are still required for the purpose that they were established, to mitigate any risks to financial sustainability.
- Halt any initiatives that would otherwise divert the council’s finances or expose it to additional financial risks post-Covid.
What this means for you
With C.Co’s support to put the right framework in place, councils should be able to respond to the difficult challenges presented by Covid-19 in the immediate and longer term.
Contact our team of professionals to see how we can work with you to help your organisation alleviate financial distress to become more financially sustainable.