Council Reserves

The Chartered Institute of Public Finance and Accountancy (CIPFA) has hit back at comments made by communities secretary Eric Pickles suggesting struggling councils could use their cash reserves to tackle financial problems.

Councils’ financial reserves are not a ‘silver bullet solution’ to funding issues and decisions on how they are spent must remain with local councillors CIPFA stressed today.

Steve Freer, CIPFA’s chief executive said: ‘We have to be extremely careful about using one-off reserves to fund shortfalls in recurring funding. Reserves are not a long-term solution.’

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