CIPFA’s chief executive has issued urgent guidance regarding protocol around issuing a section 114 notice, “given the many complex local discussions taking place”.
In a written statement on LinkedIn, Rob Whiteman reiterated previous guidance that it is “reasonable” to not issue a notice whilst an authority is having ongoing discussions with the government “to remedy the proximity to an unbalanced budget by additional support, for example, a capitalisation direction”.
“Of course, if conversations are effectively exhausted and support is not apparent on a reasonable timescale, the s114 notice should then proceed,” Whiteman added.
He stated that he is recirculating s114 guidance to section 151 officers, “given the many complex local discussions taking place”.
In the past few months, numerous local authorities have come forward warning that they face issuing s114s, with Birmingham issuing a notice at the beginning of this month.
Only today (21 September) Room151 has reported that the prospect of Medway Council issuing a s114 notice is “very likely”.
In his LinkedIn statement, Whiteman explained that CIPFA continues to “lobby for sustainable funding and advise on the need for strong local governance and financial management”. He added that these approaches avoid the need for “sticking plaster support”.
Whiteman finished his statement by outlining that CIPFA will write to chief financial officers next week.
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