The recent Public Finance Live conference in Birmingham highlighted the breadth of the challenges facing local government finance. Council tax reform, redistributive funding, financial sustainability and section 114 risk, reorganisation and devolution, digital transformation, and value for money scrutiny were all prominent themes.

Together, these pressures are reshaping the expectations placed on finance leaders. Technical expertise alone has long been insufficient. Today's chief finance officers (CFOs) are expected to combine financial discipline with strategic vision, political acumen, and the ability to lead transformation – whether digital, organisational, or cultural. The complexity of the role continues to grow.

And this shift is reflected in the briefs we receive. Increasingly, clients are seeking finance leaders who not only bring financial credibility but who can also contribute to wider corporate strategy, influence place-shaping, and drive innovation across the organisation.

Modern public finance leadership therefore requires agility and breadth. CFOs must understand data governance, oversee net zero investment planning and embed resilience across increasingly integrated service systems. Leading cross-organisational teams, managing diverse stakeholder relationships, and communicating with authority are now as essential as delivering a balanced budget.

Importantly, these capabilities are not exclusively found in those with the most years of experience. Some of the most dynamic, digitally fluent and inclusive leaders we encounter are deputy s151 officers or professionals from adjacent sectors. Many bring fresh perspectives and strong potential to thrive in the statutory role.

We recognise, however, that local authorities operate in a high-stakes environment. Understandably, there can be caution in appointing candidates who have not previously held the s151 post. Yet this risk aversion can sometimes come at the cost of overlooking high-calibre individuals ready to step up.

Structured support is critical to bridging this gap. At Penna, we help clients identify leadership behaviours and values alignment – not just technical experience – and advise on the development support new appointees may need to realise their full potential and to succeed. Recruitment should not be viewed as a standalone transaction, but as the start of a longer-term leadership transition.

We are also focused on strengthening the leadership pipeline. In partnership with CIPFA, we deliver regional career development seminars for aspiring CFOs across the country. These sessions provide honest insight into the CFO role – how it differs from other leadership posts, and what candidates can do now to prepare for it.

These events are not simply about promotion, they are about agency – empowering professionals to take control of their development: to understand their strengths and development areas, build networks, and access mentoring and learning opportunities that will support their progression.

Even when appointing experienced CFOs, there is no such thing as the ‘finished article'. Every organisation brings a new context, culture, and challenge. And as part of our approach, we support incoming leaders in developing 100-day plans to help them build momentum quickly and effectively.

We also signpost candidates and clients to development opportunities through CIPFA's programmes, such as the LEAD Programme and the CFO Leadership Academy. These initiatives play a vital role in helping public finance professionals adapt to evolving expectations and lead with greater impact.

So, in spite of financial constraints, political uncertainty, and increasing public scrutiny, the sector continues to demonstrate remarkable resilience. Finance leaders are continuing to deliver more for less, under immense pressure. The calibre and commitment of individuals across the profession remains a source of strength.

While there are challenges, there is also huge opportunity. For those who are ready to step forward, embrace change, and lead with integrity and innovation, this is a defining moment, and we're proud to support both clients and candidates on that journey.

 

Andrew Tromans is a Senior Consultant, Executive Search at Penna