Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Accepted
MHCLG lacks comprehensive outcomes framework for local government, focusing on specific spending areas.
Conclusion
Councillor Pete Marland and Iain Murray both stressed the importance of focussing on outcomes.18 In response to our question on supporting greater transparency of spend and delivery of outcomes, MHCLG told us that there was significant work under way to produce a simple and 10 Q 41 11 C&AG’s Report, para 3.22 and Figure 13 12 Q 4; C&AG’s Report, Figure 13 13 Qq 35, 40 14 Q 40 15 C&AG’s Report, para 2.11 16 Q 59 17 Q 63; C&AG’s Report, paras 2.12, 2.17 18 Qq 16, 17 11 accessible outcomes framework for local government. It acknowledged that, unsurprisingly, outcomes were poorer in places that had traditionally received less money. It said that it wanted the framework to provide metrics to judge performance without being too onerous for local government.19 MHCLG acknowledged that it had probably been guilty of focussing on specific areas of spend, rather than overall expenditure as a whole. For example, MHCLG will measure the outcomes for a £1 billion grant on adult social care, but not for total adult social care spend. MHCLG did not provide any further details of when the outcomes framework would be published or implemented.20 Complexity of funding
Government Response Summary
The government states the recommendation is implemented and provides details on the new Local Government Outcomes Framework, announced on 3 July 2025. This framework will be published alongside the 2026-27 Local Government Finance Settlement and will be used from April 2026 to simplify funding by setting 15 priority outcomes for local authorities.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 Through its Accounting Officer Statement, the Ministry of Housing, Communities and Local Government (MHCLG) has set out how it ensures value for money through the Local Government Accountability Framework, and how responsibility is split between local authorities and central government departments. MHCLG collects and analyses information from a wide range of sources to provide assurance that the core Local Government Accountability Framework is working and to assess risk. Sources include financial data, information on outcomes, and information relating to specific services, as well as soft intelligence. MHCLG also reviews publicly available statistical returns provided by local authorities and local intelligence collected through relationships built with local authorities by teams in the department. 1.3 MHCLG is leading reforms to government oversight of local authorities, to move towards outcomes-based accountability, focused on the impact of spending on local communities. On 3 July 2025, the Deputy Prime Minister announced the new Local Government Outcomes Framework. MHCLG wrote to the Committee to provide further details. The Framework supports the simplification of local authority funding by setting 15 priority outcomes that central government wants to work with local government to deliver with their more flexible funding. With simpler funding and a focus on outcomes, local leaders will have greater flexibility to decide on approaches that provide the best value for money and deliver improvements for their areas. MHCLG’s work to strengthen the local audit system will also provide independent assurance that arrangements are in place to secure value for money from these decisions. 1.4 The Framework will be published alongside the provisional Local Government Finance Settlement for 2026-27 and will be actively used to support outcome delivery from April 2026. As these reforms are developed, MHCLG will continue to update the Committee.