A team of independent financial specialists have been asked by Trafford Council to conduct a financial check-up of the organisation to help it to continue to balance its budget in the future
The Council has asked financial experts the Chartered Institute of Public Finance and Accountancy (CIPFA) to conduct the review to make sure it is managing its finances well and to help identify any further savings that could be potentially made.
The process, which will start next week, 29 July, and comes after more than £306 million of budget pressures the Council has faced in recent years.
Trafford is one of the lowest funded councils in the country and finance chiefs continue to look for transformative savings, but this is becoming increasingly difficult given the Council’s already low levels of spend.
Meanwhile the authority’s cost base continues to rise, with a significant increase in need for services especially in children’s and adult social care.
In the last four years the Council has had to use £35m of reserves to support the budget and only £8m remains available.
Council Leader Cllr Tom Ross said:
“We made it clear when we set the last budget that we are being tasked to do more with less money. I believe we have managed our finances well in recent years but we have little resilience in reserves to sustain a balanced budget in the future.
“We also made clear during the last budget setting in February that we planned to ask CIPFA to look at the way we have managed our budget. And we have commissioned this check-up as a prudent way of making sure we are maximising the use of our money and ensuring we will be financially resilient for the future.”
CIPFA, which is the only UK professional accountancy organisation dedicated to public financial management, is recognised as independent of any sectional or political interest within local government.
Cllr Ross added:
“Like so many of our public services, councils are facing severe financial challenges. We’re committed to delivering a balanced budget and this review is one of a number of initiatives that will help support the budget setting process. Trafford Council also requires a change in funding so we can be on financial parity with similar councils and we will be making our case for fairer funding to the new government.”