Source · Select Committees · Public Accounts Committee
16th Report - Whole of Government Accounts 2022-23
Public Accounts Committee
HC 367
Published 19 March 2025
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Sixteenth report from Session 2024-25 · published 16 May 2025
Recommendations & Conclusions
13
Conclusion
Rejected
Treasury provides £45 million for local authority audit services, considering continued future funding
Conclusion
The Treasury told us that it was providing £45 million of funding to MHCLG to support local authorities in purchasing audit services. It confirmed that such funding was to address where audit costs have risen faster than fees paid.27 We …
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Government Response Summary
The government rejects the committee's perceived conclusion that it has taken too long to put plans in place for local audit, despite the committee's observation about funding for audit services. It outlines actions taken to clear the backlog, including statutory backstop dates and a strategy to overhaul local audit.
HM Treasury
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14
Conclusion
Rejected
MHCLG plans to simplify local authority financial reporting to resolve audit issues
Conclusion
The Treasury and MHCLG also described other measures that they think will resolve the local authority audit issues. Beyond the backstop and additional funding, MHCLG said it is working to simplify the financial reporting requirements for local authorities, as the …
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Government Response Summary
The government rejects the committee's perceived conclusion that it has taken too long to put plans in place for resolving local authority audit issues. It details its decisive actions, including announcing statutory backstop dates and launching a strategy to overhaul local audit.
HM Treasury
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16
Conclusion
Rejected
Insufficient audited accounts undermine local authority transparency and financial health.
Conclusion
We questioned MHCLG as to whether it has sufficient oversight over local government to foresee financial issues and intervene where appropriate. The lack of audited accounts being published leads to a lack of transparency over local authority matters during a …
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Government Response Summary
The government disagrees that MHCLG lacks sufficient oversight of local government, stating that MHCLG uses existing modelling and financial information to understand the sector's resilience.
HM Treasury
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17
Conclusion
Rejected
Treasury and MHCLG claim alternative methods monitor local authority financial health.
Conclusion
The Treasury believes that it and MHCLG do know what is going on in the local authority area, and that there are other ways, beyond audited accounts, for them to check the financial health of a local authority.37 MHCLG added …
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Government Response Summary
The government disagrees with the premise that MHCLG lacks sufficient oversight of local government, stating that MHCLG uses modelling and other financial information to understand the sector's resilience.
HM Treasury
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