Questions about town and parish councils
Follow Councillor Q&A on X/Twitter

Follow us on X/Twitter

0 votes
A recent explanation from our clerk advised that technically when creating and EMR pot there was no need to nominate a specific power to justify it ie PC only has to do that when spending it.  Whilst this does not make sense is that statement correct?.  Just another example of the laxity which exists around all forms of reserves .  The last few days has taught me a lot ie the budget setting exercise is really a precept setting exercise and making the reserves pots fit  and the yearly EMR review is little more than a tick box jobby.  Totally disillusioned
by (5.0k points)

3 Answers

0 votes
If your council has General Power of Competence, it is the power of first resort and therefore there is no requirement to identify a further power.  EMR should be to cover short term liabilities that the council has or to build up a pot for a larger project in the future, for example to cover any elections, emergency tree work or to budget for a new playground....
by (24.6k points)
We have huge EMR and at the annual review stage I sought to question what power they intended to use on various pots as we don't have GPC.   The clerk replied well actually  we don't have to nominate a power until we spend it.  This seemed a ridiculous statement but I wondered if it was factually correct
surely each ear marked reserve has a title as to what it is being kept for?
Yes but they don't necessarily align with a given power.   For example we have one entitled Village Enhancement Scheme which could be for anything. Many pots were created during GPC times and not updated.  When questioned I was told that powers dont need to be considered until we choose to spend it
0 votes
I’d say your questioning approach is entirely appropriate - but likely to be particularly unwelcome.
Your logic is sound - if there is no power to spend the money in the area for which it is being set aside, then why the hell set it aside if it can’t be spent there.
by (22.2k points)
0 votes
EMR’s should be specific not vague they should be reviewed regularly and your Financial Regs should cover this process

It sounds like what your PC is doing is hoarding money under false pretences but this is common as having a huge pile of other peoples cash means you don’t need to bother about managing the finances
Calculate the loss each year between the interest rate you get and inflation
by (11.7k points)

Welcome to Town & Parish Councillor Q&A, where you can ask questions and receive answers from other members of the community. All genuine questions and answers are welcome. Follow us on Twitter to see the latest questions as they are asked - click on the image button above or follow @TownCouncilQA. Posts from new members may be delayed as we are unfortunately obliged to check each one for spam. Spammers will be blacklisted.

You may find the following links useful:

We have a privacy policy and a cookie policy.

Clares Cushions logo Peacock cushion

Clare's Cushions creates beautiful hand made cushions and home accessories from gorgeous comtemporary fabrics. We have a fantastic selection of prints including Sophie Allport and Orla Kiely designs and most covers can be ordered either alone or with a cushion inner. Buying new cushions is an affordable and effective way to update your home interior, they're also a great gift idea. Visit our site now

3,001 questions
5,890 answers
10,222 users
Google Analytics Alternative