Section 114 notices should be a very last resort when all else fails, local government finance experts told a Solace Summit session.
Chartered Institute of Public Finance and Accountancy (CIPFA) director John O’Halloran said the consequences of a s114 notice were losing control of the authority, bringing commissioners in and potential reorganisation.
CIPFA director Joanne Pitt told the session: ‘It’s incredibly tough to make savings but it’s nowhere near as hard as working under a s114.’
She told delegates there was a big issue around the perception of s114 notices, which are associated by the public and the media with the word ‘bankruptcy,’ adding: ‘There is a huge perception of incompetence across the sector.’
This article was originally published by The MJ (£).
If this article was of interest, then check out our feature, 'Preventing future Section 114 notices'.
