As Owen Mapley officially steps into the role of CIPFA CEO in general election week, it’s a pivotal time for public sector finances. But having spent a significant chunk of his career at the public financial management coalface, Mapley is relishing the prospect of being able to stick his neck out as the next government outlines its public sector game plan. 

“I've never really spoken out before, but it’s appropriate that CIPFA has a strong voice both on behalf of the profession and where things are concerning from a good financial management perspective. We need to call that out. I’m looking forward to continuing where Rob [Whiteman, former CIPFA CEO] left off.”

The turmoil of the past few years has unleashed a disproportionate impact on public sector finances as the volume and complexity of demand for core services provided by local authorities has exploded against a backdrop of constrained funding and massive inflation.

Difficult decisions

“Local government funding saw greater reductions in real terms during the austerity years in the past decade than most parts of the public sector. Difficult decisions need to be taken – about prioritisation, standards and service quality,” he says. 

Mapley knows all too well the challenging situation that this has created for public sector finance chiefs. Having completed his ACA training with PwC and cut his teeth with a variety of private and public sector clients, a secondment in central government cemented his desire to pursue a public sector career. “I just loved it. It was a real combination of financial management and change leadership, and it really spoke to me. It matters to me that services are delivered well.” 

He spent eight enjoyable years in the senior Civil Service, holding finance director roles at the Home Office, HM Courts Service and the Legal Aid Agency, navigating big ‘P’ and little ‘p’ politics. For the past five years, he has been Chief Executive of Hertfordshire County Council – his home turf – having spent the previous three years as the council’s Executive Director of Resources and s151/Chief Finance Officer. 

The complexity of local authority funding

The way that local government gets its money is unnecessarily complex, Mapley argues. Each year core funding allocations for the forthcoming financial year are announced in the provisional local government finance settlement, usually in December. Following consultation, allocations are confirmed in the final settlement, usually in February. 

“There are way too many individual pots, and you have to bid for those funds way too often. Hertfordshire Council has a £1bn a year budget, £100m in capital, 8,000 staff and literally hundreds of services delivered day to day. To only get confirmation of your funding a few months before that year starts is just not sensible.” 

CIPFA is calling for greater stability, longer-term planning horizons and simplification of where the money comes from. Despite commitment for change in election manifestos, Mapley isn’t holding his breath. 

Prioritising public services

Meanwhile, with thinktank the Resolution Foundation last month warning of a possible £12bn black hole in the public finances, huge pressure on public funding is almost certainly set to continue. Despite rhetoric from all parties about how intricately costed and funded their pledges are, pressure to work smarter over the past decade means little slack remains. “We need to have difficult conversations about which public services should be prioritised and what residents should legitimately expect from their public services.” 

The local audit crisis is also high on Mapley’s agenda. Out of the total 467 local authority audits in the UK, only five opinions were provided by the publishing deadline for the 2022/23 financial year, according to figures from Public Sector Audit Appointments (PSAA). 

Local audit backstop – a pragmatic solution

The government’s local audit backstop plan, a compulsory deadline for all outstanding financial assessments, is a pragmatic solution to dealing with the immediate backlog, Mapley believes. “There will be a lot of qualifications of local government in the coming months purely because the audits haven’t been done, but we must never allow that to become the norm. We’ve got to make sure that the value of audit is maintained. We must continue to try to find a medium-term fix and not allow this to become the default.” 

At the same time, focusing on the value proposition for CIPFA’s 15,000 or so predominantly UK-based members is high on the list of priorities. “Rather than it being an organisation that trains, examines and then polices the CPD, I want it to be more of a dynamic relationship where people can do a tailored needs analysis about the sorts of things that might help their development.”

Ensuring a strong pipeline of future members is being underpinned by a new structured elearning project for school students, Springpod, to bring to life what a career in public finance might look like. “It can have a bit of a dry reputation. My experience shows it’s far from that. You can be intimately involved in dealing with some of society’s biggest challenges and delivering services that really matter to people.”

Dual ICAEW/CIPFA membership

The strategic relationship with ICAEW, which now offers a fast-track pathway to dual membership, is a game changer, Mapley believes. “For a lot of people today, their careers take twists and turns. That ability to move between sectors is positive for the individual, positive for careers.”

As the only dedicated body focused on public financial management, opportunities to take the CIPFA brand, products and expertise to support improved public financial management elsewhere in the world are rife, Mapley believes. 

Sustainability skills – the sweet spot for finance

Meanwhile, the opportunities for finance teams to lead a charge on sustainability are plentiful, he says. “The sort of skills you need – rigour, accuracy and providing reporting that tells a story to stakeholders – that is absolutely in the sweet spot for finance professionals.” 

More than 300 local authorities across the UK have declared climate emergencies, with nearly two-thirds of these aiming to become carbon neutral as soon as 2030. Just last month, the International Public Sector Accounting Standards Board announced that an initial draft climate-related disclosures standard for the public sector would be published in Q4 2024. 

But waiting for standards is a mistake, Mapley warns. Instead, the emphasis must be on continuous improvement and highlighting best practice. CIPFA has worked with ICAEW to create a public sector version of its sustainability elearning tool. “We mustn’t let perfect be the enemy of good. There’s an obligation on all of us – both individually and collectively – to do more.” 

Of all the things that Mapley has inherited, it’s the strategic partnership with ICAEW that has the most potential, he says, a partnership that was further cemented when CIPFA last month relocated to Chartered Accountants’ Hall. “In many areas, public and private sector organisations work together to deliver services, and professionals move between the sectors at different points in their careers. Having two strong organisations in both of those sectors working closely together is a good thing for members, for the profession and for society at large.” 

However, CIPFA’s fundamental mission – as the home of excellence in public financial management – will remain unchanged, he says. “I want to make sure that we spread a clear message about who we are, what we do and how we do it.”