§ Mr. KeetchTo ask the Secretary of State for the Environment, Transport and the Regions what the recommended level is of reserves required to be held by a parish council; and if he will make a statement. [136179]
§ Ms ArmstrongThe Government do not make recommendations on the level of reserves to be held by parish councils.
The Chartered Institute of Public Finance and Accountancy (CIPFA) published non-statutory guidance on standards of financial reporting for parish councils following the laying of the Accounts and Audit Regulations 1996.
The CIPFA guidance does not make recommendations on levels of reserves either, but does set out reporting requirements and guidance relating to reserves for small (budgeted annual income of less than £5,000), medium-sized (£5,000–£500,000) and large (£500,000 plus) parish councils.