'I see light at the end of the tunnel but it's going to be hard work' says Shropshire Council's interim finance chief

Duncan Whitfield has taken over from James Walton, who left the organisation at the end of last month following 26 years of service.

Also called the section 151 officer, the CFO is responsible for the proper administration of a council’s financial affairs.

They are also the person who can issue a section 114 notice when they believe the authority cannot balance its budget. It restricts all new spending, except for statutory services, and effectively declares that the council is bankrupt.

However, Duncan Whitfield – who was previously a section 151 officer at Southwark Council in London – doesn’t think Shropshire Council is in that position.

“I only call it when a council has, through its devices and fault, run into financial difficulties, and that is not the case in Shropshire,” said Mr Whitfield.

“This is not about mismanagement. This is about circumstances, demand pressures and government funding restrictions.

“What government has created, rightly or wrongly, is exceptional financial support [EFS] which Shropshire has applied for, and it’s exactly the right route to take. MHCLG [the Ministry of Housing, Communities and Local Government] would not want Shropshire to issue a 114.

“The previous Government was trying to avoid councils going into a 114, probably because they realised themselves there were complications in the funding system, which they thought would be resolved through fair funding.

“They need to support us like they have other councils.”

Shropshire Council is due to hear whether its EFS application – for just over £200 million to cover both this financial year and next – has been granted. Mr Whitfield is confident that the council will get its wish, but acknowledges that if it doesn’t, a section 114 notice may have to be issued.

“If the worst comes to the worst and we do not get what we’ve asked for from government, then there may be a need to consider a 114,” he said.

“And I do think I would have enough knowledge to do that were we to get to that point, but I don’t expect that to happen.”

The council is also asking the Government to have another look at its formula which will lead it to it receiving a reduction in funding.

“From a government management of local government finance, I’m pretty much seeing a dead end,” said Mr Whitfield.

“I can’t see a way of government sorting itself out to make sure local authorities have got a cake of the right size and the correct mechanisms for distributing it.

“But from a local authority point of view, I think of two historic events. One goes back in Thatcher times maybe when there is a really difficult period and local authorities went through a very short, sharp shock of resources being pulled away. And I remember it felt horrible at the time, but I think local authorities actually came out stronger for it.

“The second one was through austerity when all the funds were withdrawn.

“But again, local government survived and it continues to provide a massive number of quality services. And I think we will do the same again, and it’s driven by people who work in the service.

“I’ve arrived in Shropshire and found a budget forum where all parties are sitting round a table at the same time, and an independent Local Government Association-driven panel overseeing what we do.

“So I do see light at the end of the tunnel and will come out the other end. But it’s going to be hard work for a couple of years.”