17-10-2024
Urgent action is required to tackle significant workforce challenges in local government finance teams, says a new report by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Government Association (LGA).
Published today, the Local Government Finance Workforce Action Plan for England outlines four key recommendations to address critical shortages in finance staff across English councils. The research reveals a 16% vacancy rate in finance positions and significant recruitment and retention challenges, as evidenced by an average turnover rate of 12.5% among local authority finance teams. There is an urgent need for targeted training and development initiatives to ensure that councils can continue to maintain essential services.
The report’s findings, gathered through extensive surveys and consultation with chief financial officers (CFOs) in English councils, call for national, regional, and local action to ensure finance teams are equipped to meet growing demand.
The report identifies four areas of focus to deal with workforce challenges:
- Boost leadership capacity and capability: Urgent steps are needed to develop more candidates for Chief Finance Officer (CFO) roles and improve succession planning at deputy CFO level. Mentoring and leadership development programmes would attract and retain talent, particularly in smaller councils.
- Attract and recruit the right staff: Pay is seen as the main barrier to recruitment. More work is needed to promote careers in local government finance, alongside rethinking reward packages to appeal to a more diverse range of candidates.
- Develop staff: Comprehensive workforce development strategies for local government finance, including increased access to qualifications, continuous professional development (CPD), and better management training would enhance staff capabilities and assist both recruitment and retention.
- Create the right environment to deliver: High staff turnover is putting unsustainable pressure on finance teams. Building a positive working culture, offering career progression, and reducing reliance on agency staff are vital steps to improving retention.
The LGA and CIPFA will now work together to seek to address the recommendations in the plan, building on existing activities such as support for workforce planning provided by the LGA and the Impact Finance Scheme, currently being piloted in London.
CIPFA Chief Executive Owen Mapley, said:
“Local government finance teams are under immense pressure, and without strategic investment in people and skills, these issues will only get worse. CIPFA and the LGA’s report offers practical solutions to help councils recruit, retain, and develop the talent they need to continue delivering for their communities.”
Cllr Pete Marland, Chair of the LGA’s Economy and Resources Board, said:
“Finance teams play a crucial role in helping councils deliver the valuable services our communities rely on
“This report highlights the urgent need to invest in and develop the finance workforce and we look forward to working with government and the sector on safeguarding the future of this profession, which is vital for local government.”
The report emphasises that improvements in workforce capacity and capability will depend on available resources and funding. Without immediate intervention, the research statistics reveal that local government finance teams will struggle to meet service needs, affecting public services nationwide.
Notes to editors
- Read the Local Government Finance Workforce Action Plan for England report
- The supporting survey, ‘Local Government Workforce Capacity Survey: Finance’ was conducted by the LGA’s Research and Information Team. It was an online survey of 317 Directors of Finance or equivalent in English councils, taking place between October and December 2023, and yielding a response rate of 34 per cent.
- For more information, please contact the CIPFA Press Office at press@cipfa.org.
About CIPFA
The Chartered Institute of Public Finance and Accountancy (CIPFA) is the only professional accountancy body dedicated exclusively to public finance, setting standards and offering guidance for public sector financial management.
About LGA
The LGA is the national voice of local government, working with councils to support, promote and improve local government.
People are being encouraged to ‘Make a Difference’ where they live with a new career working for their local council. The LGA is launching a national recruitment campaign for local government next month.