Source · Select Committees · Public Accounts Committee
Recommendation 1
1
On the basis of a Report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a Report by the Comptroller and Auditor General, we took evidence from the Department for Levelling Up, Housing & Communities (the Department) and HM Treasury (the Treasury) about local government finance in England.1 The Department is responsible for working across government to support the Treasury to make major decisions about local government funding and it plays a significant role in distributing that funding.2 The Department is also responsible for the accountability system that assures Parliament about how local authorities use their resources, including preventing and responding to financial and service failure.3
Government Response
Not Addressed
HM Government
Not Addressed
1.1 The government agrees with the Committee’s recommendation. Target implementation date: End of 2022 1.2 In December 2021, the department concluded a comprehensive review of the regular local authority expenditure and borrowing statistics published by the government. The review identified a range of recommendations aimed at improving the content, presentation and accessibility of the statistics. 1.3 Alongside the comprehensive review, the government has taken specific action to improve the data it collects on local authority capital borrowing and investments, in response to the recent National Audit Office (NAO) and Committee reports on commercialisation. The department wrote to the Committee on 17 August 2021 setting out its plans in detail. Following a one-off trial survey in early 2021, to collect additional capital data from local authorities, the department has now made changes to its Local Authority Revenue Expenditure and Financing collections form to collect regular information on the performance of local authority investments. From September 2021, the department also receives 3-year borrowing and investment plans from authorities wishing to borrow from the Public Works Loan Board (PWLB). 1.4 The Levelling Up White Paper of February 2022 announced that the government is also establishing a new independent body focused on data, transparency, and robust evidence to enhance the government’s understanding of place-based leadership, quality of local service delivery and organisational efficacy. 1.5 The department wrote to the Committee in April alongside this Treasury Minute with more detail about its new data collections and how it plans to use these data.