The Chartered Institute of Public Finance and Accountancy (CIPFA) is to consult on the rules governing financial management.
It said consultations on both the prudential and financial management codes will begin shortly.
While consultations take place at regular intervals, CIPFA senior policy adviser Joanne Pitt said global financial and political instability meant this round of consultation was particularly timely.
Pitt said: ‘There is a robust framework in place, but it would be wrong to say there haven't been challenges around it. This is an opportunity for the sector to talk about their concerns.'
The consultation follows local government secretary Steve Reed's announcement last month that he was activating fresh direct intervention powers in a bid to prevent councils falling victim to financial collapse.
These additional powers will enable Reed to issue ‘risk-mitigation directions' to councils based on debt levels and commercial investments. They could lead to an independent review, a requirement for councils to ‘act on financial risks', the imposition of borrowing limits or forced asset disposals.
Managing director of senior officers' group Solace, Graeme McDonald, said the powers were ‘solving the problems of the past' and ‘shutting the door after the horse has bolted' as they focused heavily on commercialisation.
He continued: ‘It doesn't feel like we are in that space anymore.
‘If this was part of a bigger devolution drive, the Government should have reserve powers to intervene when things go wrong. What we are not seeing is a bigger picture of reform.'
A recent lessons learned report for the Ministry of Housing, Communities and Local Government found interventions were ‘regarded as successful' but highlighted calls from councils for more transparency, clarity, collaboration and flexibility.
McDonald said: ‘It's difficult to suggest it's effective, given the increasing number of people going through intervention and the length of time they are remaining in intervention.'
