Agenda item

The Chair invited Bevis Ingram, Senior Adviser, to introduce the item. 

Bevis stated that the government is consulting on mitigations to the implementation of International Financial Reporting Standard 9 (IFRS 9) in 2018/19. This follows concerns raised across the sector that the implementation would have unintended consequences on funding available for services though cash adjustments made to revenue accounts. The government’s proposals go some way to mitigating the possible effects in the short term, but do not go all the way to a full statutory override that had been called for. Bevis concluded that a suggested draft response from the LGA is appended to the report for approval.

The Chair thanked Bevis for the introduction and invited members to comment:

·         Members agreed that this is an excellent response.

·         Members discussed strengthening the wording around councils having less income from investments and so less income to fund services if they are forced to sell current investments

The Chair concluded that this response is agreed subject to the wording being strengthened as discussed.  The Chair then thanked members for their comments. 

Action

Members agreed and noted the submission.