Local Government Finance

(asked on 22nd September 2020) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, how many local authority accountable officers have indicated to his Department that they may have to consider issuing Section 114 notices in the financial year 2020-21.


Answered by
Luke Hall Portrait
Luke Hall
Minister of State (Education)
This question was answered on 30th September 2020

The department recognises the additional costs and pressures councils are facing as a result of the Covid-19 pandemic. Throughout, the department has encouraged local authorities with concerns about unmanageable financial pressures to approach MHCLG in the first instance. If the Section 151 officer of a council judges that the council is unable to set or maintain a balanced budget, they must consider the possibility of a Section 114 notice. As is appropriate, that judgement rests with individual authorities.

The department has worked closely with CIPFA (The Chartered Institute of Public Finance and Accountancy) who have temporarily amended their guidance on the use of Section 114 notices to further encourage local authorities to make contact with the department in the first instance to advise it of any immediate financial concerns. In advance of a decision from the relevant Section 151 officer, the department would treat such conversations as confidential in nature.

The department is continuing to engage closely with local government to understand what further support is needed to help them manage the impact of the pandemic. This includes monthly data collection, as well as a proactive approach to speaking with individual councils at an early stage.

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