Local authorities are facing deep cuts to frontline services and Section 114 notices next year, the sector has warned.
Chief executive officer of the Chartered Institute of Public Finance and Accountancy (CIPFA), Rob Whiteman, told the Housing, Communities and Local Government Committee a number of authorities are in talks with the Government over capitalisation directions.
The Ministry of Housing, Communities and Local Government has refused to reveal how many councils it is in talks with or reveal their identities.
Mr Whiteman said CIPFA advised finance chiefs not to issue Section 114 notices due to COVID-19 pressures unless there were ‘fundamental’ problems, as at Croydon LBC.
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