UK Local Authorities Welcome Cash Management Flexibility
A survey by JPMorgan Fleming has revealed that local authorities have overwhelmingly applauded the introduction of the two new cash management options: Money Market Funds (MMFs) and the Government’s own Debt Management Account Deposit Facility. The Local Authority Cash Management Survey, carried out by JPMorgan Fleming in association with Public Finance magazine, surveyed English and Welsh authorities about last year’s relaxation in the rules surrounding cash management, as well as asking Scottish authorities about their views on the proposed relaxation in regulations. Of those surveyed, 92 per cent of English and Welsh authorities say they welcome the new options and 31 per cent have so far altered their cash management practices to include MMFs. The survey reveals that around half (54 per cent) of local authorities affected believe the new rules have not gone far enough. The main criticism is that current rules are still too restrictive and more flexibility is being sought – particularly in terms of the 364-day limit on security duration.