UK Parliament’s Public Accounts Committee published its report on the Whole of Government Accounts (WGA) 2022–23, warning that the Government lacks sufficient oversight of worsening local authority finances and that the WGA is not focused enough on long-term financial risks from climate change, rising health spending and geopolitical tensions. The committee highlights that, for the first time, the National Audit Office was unable to sign off the WGA because of the local audit crisis. Only 10% of 426 English local authorities submitted reliable data for the year, with 187 failing to submit at all. The missing information is estimated to have led to net income being overstated by GBP 34.4bn and net debt being overstated by GBP 31.7bn, while undermining the Ministry of Housing, Communities and Local Government’s ability to anticipate and intervene in emerging council financial distress amid rising service demand and weaker council incomes. The committee calls on the Government to set out within six months how it will reduce missing WGA data in future years, pointing to unresolved uncertainties around backstop deadlines for completing English council accounts and the planned Local Audit Office, including how deadlines will be enforced and how the new body will deliver its remit given capacity constraints in the audit market.
UK Parliament 2025-03-19
UK Parliament’s Public Accounts Committee warns local audit crisis leaves Whole of Government Accounts unsigned and misstates income by GBP 34.4bn
The UK Parliament’s Public Accounts Committee report on the Whole of Government Accounts 2022–23 highlights insufficient oversight of local authority finances and inadequate focus on long-term financial risks. Only 10% of English local authorities submitted reliable data, causing significant overstatements in net income and debt. The committee urges the Government to address data gaps and clarify deadlines and capacity issues related to the planned Local Audit Office.