The government has today (8 September 2020) published the results
of an independent review
into the effectiveness of local authority financial reporting and
audit regimes in England, led by Sir Tony Redmond.
The review, launched in July 2019, examined whether the reporting
regimes are robust enough to spot early warning signs, such as
risks from commercial investments, to protect public funds and
better serve taxpayers.
Sir Tony Redmond recommends improvements in the way that councils
communicate with taxpayers, to empower local people and improve
transparency and accountability. This includes a simplified
statement of costs, to allow taxpayers to measure performance
against the council’s achievements.
Secretary of State for Local Government, Rt Hon MP said:
A robust local audit system is key to delivering transparency
and value for money for taxpayers, and for sustaining public
confidence in our systems of local democracy.
I would like to thank Sir Tony for undertaking this
comprehensive and important review over the last year.
I will consider the findings and recommendations carefully and
remain committed to strengthening the local audit system so
that it works more effectively for taxpayers and councils.
This government remains committed to a locally-led audit
regime, alongside robust local scrutiny and local
accountability by the press and public.
Sir Tony Redmond said:
I am grateful for the opportunity to undertake an independent
review of local audit and the transparency of local authority
financial reporting.
I have been guided by the need to see more accountability and
transparency in the local audit system and my proposed
recommendations reflect these principles.
Sir Tony is a former local authority Treasurer and Chief
Executive. He has also worked as a Local Government Boundary
Commissioner and held the post of Local Government Ombudsman,
along with a number of non-executive positions in the public and
third sectors.
The Ministry of Housing, Communities and Local Government will
carefully consider the recommendations proposed, which will play
an important strategic role in strengthening the overall
framework for local accountability.
See the full report.
A call for evidence was opened last year seeking views from
practitioners who work in the local government sector, the audit
community, representative bodies and other relevant or interested
parties.
Councils in England are responsible for 22% of total UK public
sector expenditure.
The responsibilities for local authority audits and how they are
conducted is set down within the Local Audit and Accountability
Act 2014.
The 2014 Act gave effect to government manifesto commitments to
abolish the Audit Commission and its centralised performance and
inspection regimes and put in place a new localised audit regime,
refocussing local accountability on improved transparency.
The abolition of the Commission centralised audit regime and its
top down inspection was estimated to save taxpayers £1.2 billion
over 10 years.
