Retrograde is no way to fund financial recovery

If councils call out the Government for glossing over the facts, they must ensure terms such as balancing the budget and capitalisation are not matters of ‘spin’, says Rob Whiteman.

It is well known the Chartered Institute for Public Finance and Accountancy (CIPFA) has a longstanding policy to encourage adequate reserves for local authorities.

While most reserves are earmarked for known revenue and capital liabilities, or a means of providing cover on matters such as insurance to reduce the costs of premiums, the general un-earmarked reserve is a key tool for the council to manage its finances for the medium-term.

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