Recommendation 3

The WGA does not provide assurance that significant risks to the UK’s financial sustainability are well managed. A key consideration for any organisation is its financial sustainability. There are several government liabilities disclosed in the WGA that, due to their size and nature, represent significant risks to the UK finances. For example, the liabilities related to nuclear decommissioning are complex and costly, being valued at some £152.2 billion at 31 March 2019. The provisions arising from clinical negligence are now valued at £85.3 billion, with a similar level of new cases being reported every year. In future years, the government will be further exposed to liabilities arising from its response to COVID-19 that will require strategic management. Yet the WGA does not explain how the Treasury works with other departments and bodies who manage the activities underlying the liabilities to ensure that the risks to financial sustainability are well managed and that taxpayers are getting value for money. Recommendation: The Treasury should provide meaningful insight through the WGA into how it works with other government bodies to ensure risks to financial sustainability are appropriately managed.