Uncertainty created by the government’s economic “shambles” will not throw Knowsley council off from its “strong” financial management, according to senior officers.
The comments were made at a meeting of Knowsley Council’s audit and governance committee, held at Huyton municipal buildings on Monday, where councillors met to discuss the borough’s financial position.
Present a report to the committee, one officer present said the council was in a “strong” position of having “robust” financial management with no areas of concern around how the borough’s finances are managed, according to a recent self-assessment.
: READ MORE: Full list of banned dog breeds in the UK
Independent chair of the committee Stuart Green said that it was “one of the best self-assessments” he had seen, while Cllr David Lonergan extended his congratulations for the council’s performance.
Head of financial management Dan Barlow then discussed the borough’s treasury management situation – which is how the council manages its cashflow. At the end of last year, he said, the council found itself with a half million pound surplus due to a lower than expected need for lending.
This year, according to Mr Barlow, the situation looks similarly “healthy” and is likely to continue so despite the “volatile” economic situation being created by government policy.
Mr Barlow said that the recent “fiscal event” caused by the government’s mini budget which led to a sharp increase in interest rates could actually turn out to be marginally beneficial for the council’s coffers.
He said: “The fiscal event amongst many other things prompted an increase in interest rates as well as a significant increase in the uncertainty that surrounds government finance and local government finance.
“In terms of direct impact in the current year, it is too early to say definitively.”
Mr Barlow added that given Knowsley’s finances are “more weighted towards investment than borrowing” it is likely there will be more money coming in from interest yields on investments – although says the impact is likely to be “marginal.”
However, Mr Barlow added: “I think any benefit there is is going to be more than offset by the uncertainty we’re facing in local government funding.”
Cllr Lonergan said: “Are we getting much information through from the government around the budget?” adding “How hard are you finding the environment now to manage or predict and plan with treasury management?”
Mr Barlow said the uncertainty was the “hardest bit about it at the moment.”
He said: “if we knew what the task was we could start managing it but we don’t” adding “who knows where we will be in a few weeks time.”
Get the top stories straight to your inbox by signing up to our what's on newsletter
READ NEXT:
Girlfriend accompanied drug dealer and kept his stock inside herself
Sleep expert explains why you might be tired every morning
'Hidden gem' on the grounds of a Liverpool park for sale
Motorway closures beginning today
ASBO 10-year-old, dirty protest prisoner and café owner among crooks jailed this week
