s.114 Local Government Finance Act, 1988

John H Hutchinson made this Freedom of Information request to Wirral Metropolitan Borough Council

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John H Hutchinson

Dear Wirral Metropolitan Borough Council,
Further and in addition to my FoIA request "What is s.151?", an annotator, for whose intervention I am grateful, has indicated that I should be asking about s.114.

Together with my original request may I add : -

1. What is the purpose of the Local Government Finance Act, 1988?

2. What does s.114 mean for local authorities? I am not asking what it says because I may read that for myself.

3. Under what circumstances would a Director of Finance invoke s.114?

4. When, with respect to Hoylake Golf Resort, was s.114 invoked?

5. Having invoked s.114, what are the implications for the Hoylake Golf Resort project?

6. Please may you direct me to the Notice similar to that issued to Northamptonshire County Council as maybe seen at
https://www3.northamptonshire.gov.uk/cou...

that was issued to Cabinet, or whatever Committee was deemed appropriate?

Yours faithfully,

John H Hutchinson

InfoMgr, FinDMT, Wirral Metropolitan Borough Council

1 Attachment

Dear Mr Hutchinson

 

We write further to your recent Freedom of Information request regarding
the Local Government Finance Act 1988.  Please see below our response to
your questions.

 

1. What is the purpose of the Local Government Finance Act, 1988?

 

On the presumption that your request relates specifically to Section 114
of the Act, the purpose of the Act and S.114 is to impose a specific duty
on the Chief Finance Officer (CFO) (this could be the Director of Finance)
to prepare and present a public report in certain cases of actual or
possible financial misconduct and in circumstances where the CFO believes
that it is not possible to maintain or achieve a balanced financial
position.

 

The Act has other purposes including creating the community charge system,
making provisions about the payment of grants to certain authorities,
requiring certain authorities to maintain specific funds and making
provisions about the administration of the financial affairs of certain
authorities including Section 114 circumstances.

 

2. What does s.114 mean for local authorities? I am not asking what it
says because I may read that for myself.

 

Section 114 means that:

a.            The Local Authority is in a grave financial position. All
other financial options to resolve its financial difficulties have been
unsuccessful and it is still unable to balance its budget.

b.            It is likely to mean that the local authority in question
had not taken action on previous warnings from the CFO/ Director of
Finance about the seriousness of the financial position faced.

c.             Any of the following has been identified: 

•             Anticipated capital expenditure that exceeds likely
resources in the current year or a future year.

•             Anticipated revenue expenditure that exceeds likely
resources in the current year or a future year.

•             Illegal expenditure.

d.            The CFO/ Director of Finance will be required to report to
members on point c.  Full Council must consider it in 21 days. The Council
cannot enter into any agreements incurring expenditure until Council has
considered the report.

 

3. Under what circumstances would a Director of Finance invoke s.114?

 

In summary, when the Local Authority in question is in a grave financial
position. All other financial options to resolve its financial
difficulties have been unsuccessful and it is still unable to balance its
budget. See points outlined above.

 

4. When, with respect to Hoylake Golf Resort, was s.114 invoked?

 

Section 114 has not been invoked by the Council.

 

5. Having invoked s.114, what are the implications for the Hoylake Golf
Resort project?

 

Not applicable. As stated in response to question 4, Section 114 has not
been invoked therefore there are no implications.

 

6.  Please may you direct me to the Notice similar to that issued to
Northamptonshire County Council as maybe seen at
[1]https://www3.northamptonshire.gov.uk/cou...
that was issued to Cabinet, or whatever Committee was deemed appropriate?

 

Not Applicable. No notice has been issued to this Council.

 

 

Yours sincerely

 

 

Lynette Paterson

Principal Information Management Officer

Business Management

 

Treasury Building

Argyle Street
Birkenhead
Wirral
CH41 1AH

 

[2]Tel: 0151 691 8201

[3][Wirral Borough Council request email]

 

 

[4]LGC Awards15_Winner_MIP

 

 

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