Recommendation 17

We also challenged MHCLG on how reorganisation in local government will affect WGA.32 The Local Government Reorganisation ambition is to simplify local government by ending the two-tier system and establishing new single-tier unitary councils.33 MHCLG confirmed that accounts for areas currently operating under the two-tier system will continue to be prepared in the usual manner up to and including the 2027–28 financial year and from 2028–29 onwards, a single consolidated set of accounts is expected for each new unitary authority.34 While acknowledging the inherent complexity of this transition, MHCLG emphasised that reorganisation will not constitute a justification for delays. MHCLG confirmed that it considers the associated risks manageable.35 25 MHCLG, Implementing the new local audit system – a Transition Plan, November 2025; English Devolution and Community Empowerment Bill 26 Q 23 27 HC 367, Q 55 28 Q 23 29 Q 28 30 Q 29 31 Q 20 32 Q 25 33 MHCLG, Local government reorganisation: Policy and programme updates, accessed 18 February 2026 34 Q 25 35 Qq 26-27 13 3 Maximising WGA insights Disclosures of long-term liabilities