CIPFA U-turn on traffic light index

摘要

Controversial plans to rate councils' financial sustainability using traffic lights have been watered down by the Chartered Institute of Public Finance and Accountancy (CIPFA).CIPFA backed down on its plans for a weighted index following an outcry from parts of the sector that feared the creation of league tables and councils being named and shamed.However, CIPFA will publish a traffic light rating for councils' depletion of reserves, which will indicate how quickly a local authority would exhaust its funds based on the draw-down during the previous three years.