What steps need to be taken if due to the pandemic, a parish council becomes insolvent?

Question

With a vastly reduced income due to the pandemic, car park charges suspended etc,what steps need to be taken if insolvency is looming, also. what steps need to be taken if insolvency actually happens? many thanks.

Answer 1

We're into the new financial year now, so precept payments should be arriving in the next few days, if they haven't already. No council should put itself in a position where a relatively minor blip such as this could have such serious consequences. All councils should hold between six and twelve months' expenditure in a general reserve account, in addition to any designated funds for specific projects.

If a council finds itself in a precarious financial position, the first port of call should be the principal authority (district council etc), as they have the power to lend money.

Comments

Hi,many thanks for your comments / advice really appreciated.