Member Training: Grant Thornton's National Financial Resilience Report
Minutes:
Representatives from Grant Thornton provided Members with a training presentation on Grant Thornton’s National Financial Resilience Report. Members were advised that Local Authorities had worked hard to ensure robust financial health. Members were reminded of the wider picture of continued savings that Local Government would have to make into 2014/15.
Local Authorities would very likely have to absorb a further 10% reduction in 2015/16 with further cuts in 2017 and beyond. At the same time, demand for costly services such as housing options and housing benefit would increase and income based services such as planning and parking would decline.
The Committee was advised of the detailed approach taken by Grant Thornton in researching the resilience report on the financial health of Local Authorities. There had been a particular focus on strategic financial planning, financial governance and financial controls.
The Committee was advised that 2016 could prove to be a tipping point where some Local Authorities would be assessing whether they could continue to meet statutory duties in the face of a 35% reduction in spending across Local Government.
Representatives from Grant Thornton concluded that, following the results of interviews with many Local Authorities in respect of strategic financial planning, it was clear that many Councils needed to increase service planning activity in order to satisfy key financial performance indicators.
Members were advised of a number of areas of improvement for Local Government, especially as some Local Authorities were struggling to maintain sound financial planning activity. There were however, a number of good practice examples that Councils should focus on going forward.
In response to a query from Councillor R Sharma, Members were advised that East Herts Council had a healthy level of reserves and Grant Thornton were not aware of any Authority that had gone further in terms of forward financial planning. East Herts Council was assisted in this by the demographic of the District as well as wider Member engagement.
The Chairman, on behalf of Members, thanked Grant Thornton for their informative presentation.
RESOLVED – that the presentation be received.