Further challenges could be on the horizon for the public sector in Liverpool City Region which could be “on the cusp” of austerity measures, it has been claimed.
Laura Williams, chief internal auditor at Liverpool City Region Combined Authority, said while the region has planned for financial risks in previous months, the current economic situation spells “further pressures” down the line for public services. Ms Williams was addressing members of the combined authority’s audit and governance committee this morning.
Acting chair, Cllr James Hansen, Sefton Labour member, asked what measures the combined authority had in place amid a “big economic crisis coming up” and the impact on fraud and overall preparedness. Ms Williams said: “We’ve been in a situation of an enhanced fraud risk for some time because during the pandemic, the changes of working, the fraud risk has already been heightened.
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“I don’t think we’re going to move away from that any time soon.” Financial markets were spooked by announcements from chancellor Kwasi Kwarteng last week, with a fall in the pound and the Bank of England having to step in.
Prime Minister Liz Truss defended her government’s position during a broadcast round on Thursday morning. Addressing committee members at Mann Island, Ms Williams said the austerity measures seen during the coalition government of 2010 to 2015 could return to impact public services and discussed how the combined authority would manage.
She said: “In terms of the corporate risk around sustainability, it’s whether the risk level should be looked at, is this more of a pressing risk than it was previously? We’re well placed in terms of the action plan that is in place for the risk as it has existed, but clearly we may be in a position where we might be about to see some further pressures.
“I think we’re probably on the cusp of some further public sector austerity which will clearly present some further challenges to us.” Accountants Mazars have confirmed they are underway with an audit of the combined authority, expected to complete early next month.
The findings of the audit are to be reported to November’s meeting of the combined authority audit and governance committee.
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