The Chartered Institute of Public Finance and Accountancy (CIPFA) has warned that using reserves to overcome current council funding shortfalls is no ‘silver bullet' solution to local government financial challenges.
Figures published by the Audit Commission late last year revealed councils hold £12.9bn in reserves – some £4.5bn more than in 2007 – and local government secretary Eric Pickles has encouraged authorities to delve into their spare pots during the austerity period.
