Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Not Addressed
Require MHCLG to always seek explanations for late local authority accounts.
Recommendation
We also expressed concern as to whether MHCLG has the tools necessary to ensure local authorities produce audited accounts in future in line with the various backstop deadlines. MHCLG replied that, though backstop requirements are statutory, in the event a local authority does not meet that statutory requirement, it would first engage with a given local authority, and then publish a list of those that fail to publish accounts in time. It insisted that MHCLG does have intervention powers and has shown it is prepared to use them.43 However, in MHCLG’s view, there may be reasonable explanations for why local authorities cannot produce audited accounts in time, so did not think it reasonable to intervene in every instance of a body missing a backstop.44 We accept this explanation but we would expect MHCLG to always ask for an explanation as to why each account is late so that every local authority knows that they are being carefully scrutinised. 43 Q 21 44 Q 21 14 2 Useability and focus of the WGA Accessibility to readers
Government Response Summary
The government's response states it disagrees that MHCLG lacks sufficient oversight but does not address the specific recommendation for MHCLG to always ask for explanations regarding late local authority accounts.
Government Response
Not Addressed
HM Government
Not Addressed
The government agrees with the Committee’s recommendation. Recommendation implemented: May 2025. MHCLG has written to the Committee alongside the publication of this Treasury Minute. The government disagrees that MHCLG does not have sufficient oversight of local government to foresee issues and intervene where appropriate. As evidenced in the recent NAO report on local government financial sustainability, MHCLG uses modelling and a range of other financial information to understand the overall financial resilience of the sector, as well as the relative position of individual local authorities from a finance and governance perspective. These are set out in the accompanying letter.