National politicians should ‘come clean' about cuts in the run up to the General Election or they risk deepening the country's financial woes, the Chartered Institute of Public Finance and Accountancy (CIPFA) has claimed.

CIPFA has hit out at national politicians of all parties for pursuing short-term policies, chasing votes and fiscal gerrymandering, all of which will lead to a financial crisis in five years time if they are not addressed.

The accountancy body has even criticised international governments for poor auditing and financial management, which it claims deepened the global financial crisis.

Speaking to The MJ, CIPFA chief executive Rob Whiteman said: ‘Very often governments make decisions based on the news cycle.

'At the moment, promises are being made in the run up to the election that are not affordable.

'This is no way to run public finances.'

He added: ‘Political parties ought to be telling us the truth now and coming clean on what cuts need to be made.'

CIPFA has launched its manifesto for the future of public finances, entitled Things can only get worse – unless the UK is governed in the long-term public interest.

It called for the Government to scrap the Barnett formula – which would not survive devolution – and for an independent grants commission to be established.

It also claimed regular council tax revaluations should be written into legislation so governments can no longer duck the politically sensitive issue.

Mr Whiteman claimed poor financial management has exacerbated the current financial situation.

He added: ‘It is not that there is not enough money, it is that the finances are not running the way they should.'

Mr Whiteman has called for government departments to have chief financial officers to give impartial advice on risk and value for money, with that advice published.

‘We think that would have a profound impact on public services and a profound impact on the total place agenda,' he said.

The report claims Government must:

Introduce budgets for the medium to long-term

Rebalance the relationship between the citizen and state

Align local public services

Make finances more transparent and accountable to restore public trust

Read editor Heather Jameson's views on Mr Whiteman's warning and on devolution here.