• Home
  • About
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

Treasurers see Brexit undermining financial sustainability

0
  • by Colin Marrs
  • in 151 News · Funding · Treasury
  • — 15 Mar, 2018

Photo: Pixabay

Almost two thirds of senior council finance officers believe that Brexit will have a negative impact on councils’ financial sustainability, according to a Room151 survey.

The 2018 Local Government Finance & Treasury Current Affairs Survey of 86 section 151 officers and treasurers found that only 35% believed that there would be little impact on council finances from the UK’s decision to leave the European Union.

Not a single respondent said Brexit would have a positive effect on the financial affairs of the increasingly beleaguered sector.

The figures closely match a recent survey carried out separately by think tank the New Local Government Network (NLGN).

This found that 61% of leaders and chief executives believed leaving the EU would have a negative or very negative impact on their local economy.

However, NLGN also found that 12% of the same group believed the impact of going it alone would have a positive or very positive impact.

Adam Lent, director of the NLGN, said: “Whatever you think of Brexit, it has to be a concern that the most senior local government figures charged with keeping their local economies buoyant feel so pessimistic.

“The government needs to move very rapidly to address this striking loss of confidence by engaging much more closely with council Leaders and chief executives as they prepare for the UK’s withdrawal from the EU.”

Room151’s survey found that senior treasury and finance officers in Labour-led authorities were more pessimistic about Brexit, with 79% predicting a worse financial outcome for councils.

This compared to 65% in Conservative local authorities.

NLGN’s regional breakdown found the greatest worry about the issue in the North East, with the least concern coming from the South East of the country.

In December, Rob Whiteman, chief executive of the Chartered Institute of Public Accountancy and Finance, told a committee of MPs that it is currently difficult for local government to get its voice on Brexit heard in Whitehall.

He said: “I think it is at an early stage, but my experience of government is that it is incredibly stretched. In fairness, I am not sure they have much bandwidth to think.”

Whiteman added that the government has time to shape the future structure for distributing regional funding following the UK’s departure from the European Union.

“I don’t think we should look upon transition to new arrangements as a two-year issue before we leave the EU,” he said.

According to a paper produced for the Greater Manchester Combined Authority, the government is set to begin a formal consultation on a replacement for the current European Structural Investment Fund from 2020.

The paper said that the Ministry of Housing, Communities and Local Government has held a series of informal meetings with officers from local enterprise partnerships, core cities and combined authorities.

According to three senior academics on the website UK in a Changing Europe, the re-domestication of regional policy following Brexit “will almost certainly mean the re-politicisation of it, making long-term commitments all the more difficult.”

“Successive governments will have an incentive to abolish what went before,” it said.

“Indeed, in a highly centralised, top-down and politically polarised governance system such as the UK, the temptation to do this will be very strong.

“This will make long-term decisions and the establishment of long-term policy commitments — which are essential for regional rebalancing — much more difficult.”

Get the Room151 Newsletter

Share

You may also like...

  • LGA & CIPFA launch finance commission LGA & CIPFA launch finance commission 23 Jan, 2014
  • PWLB money stokes bonfire of the LOBOs PWLB money stokes bonfire of the LOBOs 5 Dec, 2018
  • Q&A: Why the UK Social Bond is a winner Q&A: Why the UK Social Bond is a winner 30 Jul, 2015
  • Argyll & Bute TIF, Flood funding, TfL JV, Edinburgh asset sale, Care Bill deficit Argyll & Bute TIF, Flood funding, TfL JV, Edinburgh asset sale, Care Bill deficit 13 Feb, 2014

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 2 days ago

    Will new public procurement rules offer the best commercial results?: The government has issued a green paper on reforming procurement rules. Helen Randall and Rebecca Rees examine the proposals and argue they may not go far enough. The Cabinet… dlvr.it/Rqtw6T pic.twitter.com/9GiVTkL08U

    Room151 7 days ago

    The vaccine may help settle cash flows but inflation remains a risk: Sponsored article: Lauren Sewell examines the prospects for long-term borrowing as Brexit settles and vaccines are deployed against Covid-19. On the 9th October 2019 Whitehall sent… dlvr.it/RqZXCr pic.twitter.com/PzgOZOGQ0k

    Room151 7 days ago

    ESG in liquidity: Sponsored article: Gavin Haywood looks at the integration of ESG in Federated Hermes’ money market funds. Federated Hermes has over 300 public sector clients invested in our AAA rated money[...] dlvr.it/RqZX5f pic.twitter.com/E87sBXsay8

    Room151 1 week ago

    New realities of investing cash and liquidity: “What to do now?”: Sponsored article: Brian Buck looks at the “unique challenge” for cash management strategies. As investors assess the ongoing impact of the pandemic on their business, levels of cash and… dlvr.it/RqVbk9 pic.twitter.com/ZElVASmEUV

    Room151 1 week ago

    Extra finance promised by the government receives a broad welcome: Sponsored article: The financial pressures facing local authorities this year continue to pose challenges for council treasurers. While the launch of the UK’s Covid-19 vaccination… dlvr.it/RqTzTF pic.twitter.com/HCjH0pyHR5

    Room151 1 week ago

    A savvy approach to managing your cash: Sponsored article: Caroline Hedges examines the need for active cash management to achieve a higher than average return. Last year saw the already mountainous pile of negative-yielding debt around the[...] dlvr.it/RqTzMK pic.twitter.com/uP0RQYTJLt

    Room151 1 week ago

    Putting alternatives at the heart of multi-asset portfolios: Sponsored article: Nick Edwardson looks at the assets that provide the “most attractive opportunities”. We believe that asset allocation is the primary driver of investment returns and that the… dlvr.it/RqQ2Qt pic.twitter.com/WLBzvRRRUQ

    Room151 1 week ago

    Thriving in the pandemic: Avoiding the stragglers: Sponsored article: George Crowdy looks at the sectors providing opportunities for sustainable investment. Throughout much of 2020, we talked about why sustainable investing has thrived in the pandemic,… dlvr.it/RqQ2NQ pic.twitter.com/dxiPWKFsPl

    Room151 1 week ago

    The development of CCLA’s mental health benchmark: Sponsored article: Amy Browne examines the importance of investing in mental health in the workplace. We are living through a public health emergency in more ways than one. Physical health[...] dlvr.it/RqQ2Jx pic.twitter.com/o6yRSCX3oF

    Room151 1 week ago

    Brexit: What the EU trade deal means for the UK economy: Sponsored article: Hetal Mehta looks at the impact of Brexit on economic prospects. Four and a half years after voting to leave the EU, on Christmas Eve the UK finally[...] dlvr.it/RqLBDt pic.twitter.com/No62srfE8h

    Room151 1 week ago

    Cash dethroned: The quest for liquid yield: Sponsored article: Peter Hunt and George Carne ask how treasury departments can balance the need for yield and liquidity. The massive stimulus and waves of liquidity provided by central banks[...] dlvr.it/RqLBDj pic.twitter.com/05g6Zhu1kU

    Room151 1 week ago

    Richard Harbord: Delayed “capital determinations” make section 25 opinions a new crunch point: The severe pressure on local government budgets now means section 151 officers confront a tricky call on  whether they can make a judgement on the robustness… dlvr.it/RqLBDV pic.twitter.com/vTAbDKFzkI

    Room151 1 month ago

    PWLB Consultation: Analysis straight from Dickens: Helen Radall and Paul McDermott present a legal examination of the new PWLB borrowing rules as Charles Dickens might have imagined it. Free and easy PWLB (“Marley” to his friends)[...] dlvr.it/RnmwLq pic.twitter.com/yFxcPrQqEG

    Room151 1 month ago

    Room151’s top stories from a momentous year: 2020 was the year in which local government grappled with Covid-19, funding strains, controversy over borrowing rules and the threat of financial collapse. It has been an exhausting and historic[...] dlvr.it/RnlpZg pic.twitter.com/g3myNyox6J

    Room151 1 month ago

    Tracy Bingham: 2020, a year best forgotten but also one of learning: Many will rush to erase 2020 from their memories but, writes Tracy Bingham, there were also many lessons about finance teams, strategic planning and leadership. 2020: A year we’d… dlvr.it/RnlpY2 pic.twitter.com/m7G1krrtCu

    Room151 1 month ago

    Settlement must address ‘precarious’ local government finances: Dan Bates crosses his fingers for “no nasty surprises” in this week’s funding settlement but argues the “bigger prize” is post-Covid financial certainty. Thursday (17 December) should be the… dlvr.it/Rnj9dG pic.twitter.com/KLKjjuBqJE

    Room151 1 month ago

    PWLB consultation: Big change on the way but there are ‘grey areas’ and opportunities: The consultation on PWLB borrowing has concluded creating a new landscape for funding property acquisition. Our experts look at the implications. Tracie Langley The… dlvr.it/RndRvJ pic.twitter.com/KEqXEBmEfq

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Richard Harbord: A spring statement with little to offer local government
  • Next story IFRS9 overrides could be in place before April 2019

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies from this website.OK