Agenda item

The Chairman introduced Aileen Murphy and Alex Burfitt from the National Audit Office. At a time when the financial pressure on local government is increasing the NAO had initiated a study on Local Government Governance and Accountability to explore whether the current local governance and accountability arrangements were able to provide local taxpayers and Parliament with assurance that local authority spending is value for money; that authorities are financially sustainable; that key elements of the governance and accountability framework function as intended; and to explore how the department is exercising its duties as the steward of the system.

Aileen Murphy welcomed members’ views and comments on the NAO’s scope of work; pressures acting on governance arrangements; effectiveness of different arrangements; and the role of the department. In the discussion that followed the following points were raised:

-          It was important to note that there are some general principles about the NAO and their role, that it holds central government to account and not individual local authorities to account.

-          Councils already work within a set of statutory limits/safeguards and checks and balances – and this needs to be recognised.

-          The board also pointed out that the majority of shire districts no longer get direct government funding, and in such circumstances the NAO’s role becomes more tenuous, as where there is no flow of money from MHCLG, the NAO’s remit becomes questioned.

-          Regarding financial pressure, it was noted that local government has managed the funding reductions particularly well - especially when compared to other parts of the local public sector eg health.

-          Part of this success is down to Sector Led Improvement and Peer Challenge. Peer support is much more effective than Inspection because it is provided by experienced and trusted peers who know what they are talking about and as a result are able to build relationship which encourage councils to be open about their challenges.

-          Members questioned the effectiveness of the current accountability arrangements around schools and child safeguarding. NAO representatives agreed to explore this further.

NAO representatives confirmed that the conclusion of the NAO’s report would be aimed at MHCLG in terms of identifying any potential improvements/opportunities to strengthen local accountability arrangements. 

The Chairman thanked Aileen Murphy and Alex Burfitt for presenting to the Board.