Recommendation 22

Improvements to the transparency of information in the WGA would also be achieved through more detailed narrative in certain areas. The asset and liability split reported in the WGA shows total assets of £2,138.5 billion and total liabilities of £4,972.7 billion.68 In a commercial organisation this would indicate that it was insolvent. Although this is not the case, there is currently no narrative to explain this. The Treasury explained that the Government’s ability to raise future funds through taxation and borrowing is a very important asset which is not currently captured in the WGA and is outside the scope of the accounts.69 64 Q 79 65 Q 48 66 Qq 28–29 67 Q 31 68 WGA 2019–20, para 1.3, p 3 69 Q 13 Whole of Government Accounts 2019–20 17 3 Quality and consistency of data and reporting