Urgent action is needed now to tackle the workforce challenges in local government finance teams, says a new report from CIPFA and the Local Government Association (LGA).
The report, Local Government Finance Workforce Action Plan for England , outlines four key recommendations to address critical shortages in finance staff across English councils. The research reveals a 16% vacancy rate in finance positions and significant recruitment and retention challenges, as evidenced by an average turnover rate of 12.5% among local authority finance teams. There is now an urgent need for targeted training and development initiatives to ensure that councils can continue to maintain essential services.
Pay is seen as the main barrier to recruitment. The authors of the report say more work is needed to promote careers in local government finance, alongside rethinking reward packages to appeal to a more diverse range of candidates.
Comprehensive workforce development strategies for local government finance, including increased access to qualifications, continuous professional development (CPD), and better management training would enhance staff capabilities and assist both recruitment and retention.
The current high staff turnover is putting unsustainable pressure on finance teams The report explains building a positive working culture, offering career progression, and reducing reliance on agency staff are vital steps to improving retention.
Urgent steps are also needed to develop more candidates for Chief Finance Officer (CFO) roles and improve succession planning at deputy CFO level. Mentoring and leadership development programmes would attract and retain talent, particularly in smaller councils.
CIPFA Chief Executive Owen Mapley, said: “Local government finance teams are under immense pressure, and without strategic investment in people and skills, these issues will only get worse. CIPFA and the LGA’s report offers practical solutions to help councils recruit, retain, and develop the talent they need to continue delivering for their communities.”
