Title

CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY

We can't just kick the can down the road

The recently revised advice promoted by CIPFA rightly helps finance directors to give their own organisations more opportunity than ever to try and avoid a s114, says Gary Fielding.

It is understandable that there are further calls for councils to be able to balance the books over a longer period. Comparisons have been made with the NHS, which can run up deficits. While true in principle, health colleagues are often managed to within an inch of their lives on how they can hit a control total by 31 March and I have seen little by way of multi-year flexibility, planning or realism on deliverability in Whitehall. This is not something I think local government should look at too longingly.

The recently revised s114 advice promoted by the Chartered Institute of Public Finance and Accountancy (CIPFA) rightly helps finance directors to give their own organisations more opportunity than ever to try and avoid a s114. That is one reason why we have not seen more s114s.

However, I suspect a multi-year balanced budget with deficits rolled forward could be just too tempting for some and an incoming administration may face some early unwelcome challenges – remember there are no NHS elections. Whether it is a safe strategy to hold off savings plans would inevitably become more subjective and the role of the finance director would be harder still in the face of a determined political leadership.

Councils can already balance a year off by using reserves where there is confidence that there is a longer-term plan to reach sustainability. If a council finds itself without reserves, or other measures to buy time, then it is at the higher end of the risk spectrum so can least afford to defer decisions on the basis that salvation may be around the corner. What if it isn't?

The future has never looked more uncertain and I would suggest a successful budget strategy for the next few years is one that ensures survival but not just by conveniently kicking the can down the road.

Gary Fielding is corporate director of strategic resources at North Yorkshire CC and president of the Society of County Treasurers

CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY

Counting the cost of rectifying exceptional financial support to councils

By David Blackman | 19 March 2026

The scale of the problems exceptional financial support is intended to tackle highlights the need for structural funding reform, say sector experts. David Bl...

CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY

Culture not just compliance

By Hayley Titchner | 19 March 2026

The new Employment Rights Act is set to usher in fresh challenges for the sector which will necessitate behaviour change and a fresh culture if organisations...

CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY

Missions mirage

By Jonathan Werran | 18 March 2026

The absence of a genuine national growth plan and an accompanying plausible narrative is a block on any strong prospect of local economic revival, argues Jon...

CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY

EXCLUSIVE: Disappearing councils move to sign deals before reorganisation

By EXCLUSIVE by Paul Marinko and Joe Lepper | 18 March 2026

Councils facing the axe are moving to sign high-value long-term contracts before ministers sign the legal orders paving the way for local government reorgani...

Popular articles by Gary Fielding