Councils unprepared for the euro

A third of local authority IT departments have no clear idea of how their own systems work. And only a third of authorities say they have an up-to-date map of their technology infrastructure, according to research by the Local Government Users Association (LGUA).

A quarter say they don't have a systems map at all, while 13 per cent say they are still producing one. The LGUA believes that a clear picture of an IT system is vital for major operations such as preparing for euro compliance.

Of the 100 authorities responding to the survey, 95 per cent said that they will have to upgrade or replace most of their applications if the UK joins the euro.

More than half of the authorities will need to modify between six and 25 applications, and 16 per cent said that more than 25 applications will have to be upgraded. Nine authorities believe it would be cheaper to throw out more than half of their applications than to upgrade them.

Only five per cent of respondents have a plan to deal with the changes, and seven per cent said they are putting one in place. Just under half of the authorities have discussed the euro with their software suppliers.

"Nearly half of local authority IT departments haven't even discussed the serious implications of a UK decision to join the single currency," warned the report. "As there is a possibility of the UK entering the eurozone, the management of local authorities should prepare a contingency plan for this eventuality."

Some 38 per cent say it will take longer than 18 months to convert their systems to the euro, and 27 per cent believe it will take a year to 18 months.

"We can only hope that central government will consult with local authority organisations over the time needed for conversion," said the LGUA.