The last few years have seen a number of councils filing Section 114 notices and it seems inevitable that there are more to come, with recent estimates suggesting as many as four in ten councils are likely to follow suit over the next five years, and one in five expecting to be insolvent within 12 months.
The financial landscape has certainly never appeared more challenging. Pre-pandemic, many local authorities were already struggling to balance their books. COVID-19 heaped on further financial pressure and since then, budget cuts, soaring costs of living and inflationary pressures have only exacerbated the situation.
Optimising the financial outlook with a good governance framework
So how can local authorities optimise their financial outlook? First and foremost, when it comes to delivering a strategy to address their financial challenges, good governance is essential to avoid exposure to a higher level of financial risk.
Here at C.Co, our team specialises in providing clients with practical, achievable solutions when it comes to improving governance. We work collaboratively to help local authorities establish a good governance framework, with sound financial, performance and risk management mechanisms, underpinning effective decision making and providing real accountability for savings and income target delivery.
Strengthening financial sustainability, governance and oversight is the key to being an effective organisation. With our support to improve or enhance existing frameworks, councils can respond more effectively to the difficult challenges facing them in the immediate and longer term.
We are public sector change experts. Speak to us to find out how we can help you.