28-02-2025
“The report recognises the current financial crisis impacting local government, that CIPFA has been calling out for years. We welcome and support the report’s findings that current reforms must be considered holistically, not piecemeal to succeed in the light of current capacity and budget constraints.”
CIPFA Senior Policy Manger, Joanne Pitt, said:
“This report by the NAO is a welcome acknowledgment of the current circumstances of the Local Government sector, not just in terms of financial instability but also pointing out the need that the current reforms must all be considered holistically not in isolation.
“The report highlights that 42 local authorities that have received over £5 billion of support through the exceptional financial support framework (EFS ) While we acknowledge the important part this plays in stabilising authorities in the short term we must reiterate that this is not new money; EFS allows a local authority to either borrow money or sell its assets. Neither of which are long term sustainable funding approaches.
“The government’s mission states it wants to, “Kickstart economic growth with good jobs and productivity growth in every part of the country making everyone, not just a few, better off”. CIPFA sees local authorities as playing a key part in that agenda. However, this requires capacity and bandwidth which will come from greater sector stability around key pressures such as SEND.
“The report also acknowledges that prevention is critical to resetting the local government narrative. CIPFA is working with the Health Foundation to identify ways to make this area of spend more transparent and accessible, and will publish our findings in October 2025.”
Notes to editor
- Read the local government financial sustainability report from the National Audit Office
- The Chartered Institute of Public Finance and Accountancy (CIPFA) is a global leader in public financial management, dedicated to improving public services and governance through innovative research and practical solutions.
- For media inquiries, please contact press@cipfa.org.uk.