New rapid response unit ready to deploy team of finance experts to councils

A new joint rapid response unit has been set up and is in operation, ready to deploy finance experts to local authorities who need assistance following the failures of Icelandic banks.

The unit, announced by Communities Secretary Hazel Blears today, has been established by Government, the Local Government Association and the Improvement and Development Agency, to provide support to local authorities facing severe short-term difficulties. It has a team of experts in local authority financial management in place and ready to go immediately to any authorities who need that assistance.

These steps come as part of a wider action plan of support to English councils experiencing serious short-term difficulties, the public services they deliver and the communities they serve.

In a written Parliamentary answer, Hazel Blears also said that many local authorities had already publicly stated that any risk they face was not a threat to frontline services. However, a small number of authorities may have specific problems which is why the government was putting in place this support and expertise.

She added that no local authority had told the Local Government Association that it can not pay the wages of its staff.

Communities Secretary Hazel Blears said: ''The Government's first priority has been to do everything we can to help local authorities, along with other creditors, get back the money which they had deposited in the banks.

''My Department has been working closely with the Local Government Association to ensure that individual authorities who are experiencing severe short term difficulty get assistance. The new rapid response team is up and running, with a team of finance experts ready to go immediately to any authorities who need assistance.

''We are taking this action to protect council taxpayers, communities and those public services on which the most vulnerable people in our society depend.''

The Local Government Association are finalising an urgent analysis of the effects of the situation on individual local authorities. CLG and HMT ministers will be meeting again with the LGA later on this week to see what further action is needed.

Moneyextra.com recommends you take independent financial advice before acting on any article

2008-10-14 17:52:17 © Moneyextra.com