Over the last few years, parish and town councils have communicated their frustration to NALC and county associations that high street and other banks do not understand what they are, how they work or what sector they fit into.
Local councils must, however, be able to discharge their statutory financial duties under the Local Government Act, 1972, the relevant Audit and Accounts regulations, and other statutory regulations, and be able to bank to make and receive payments. Due to a raft of different factors for many local councils, this has not been possible in recent years, making the task of the clerk, Responsible Financial Officer (RFO), chair and other councillors almost impossible in some instances.
NALC has continuously lobbied UK Finance (the trade association for banks), relevant government departments and the Know Your Customer (KYC) teams of various high street banks to highlight these issues, with mixed results.
The new webpage sheds light on the intricate banking landscape within which local councils operate. It delves into prevalent banking challenges and their likely origins, outlining the sector-wide advocacy efforts conducted by NALC and its counterparts in recent years. The page also features contact information and initiatives for banks actively engaged with local councils, relevant resources, insights from NALC’s 2020 banking research, a dedicated document defining local councils for high street banks, and a compilation of pertinent news stories.
NALC is committed to resolving challenges local councils face in the banking sector and will continue to work with UK Finance, the trade association for banks, and other stakeholders.