Whole of Government Accounts 2018-19

Public Accounts Committee Closed Inquiry
Opened: 4 Nov 2020 Closed: 25 Mar 2021 Parliament page
The Whole of Government Accounts (WGA) is a unique document which provides the most complete and accurate picture available of UK public sector finances. The WGA is a set of financial statements prepared by HM Treasury in accordance with International Financial Reporting Standards, that consolidates information on the financial performance … Read more
2 Recommendations
22 Conclusions
1 Report
1 Oral session
4 Letters
1 Event
Activity timeline 8 events
2 Nov
2021
Correspondence
14 Sep
2021
Correspondence
10 Sep
2021
Correspondence
20 Jul
2021
Correspondence
26 Mar
2021
Report published
22 Jan
2021
Report published
19 Nov
2020
Oral evidence
19 Nov
2020
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
Oral evidence sessions 1 session
19 Nov 2020
View on parliament.uk
Whole of Government Accounts 2018-19
Cat Little · Cabinet Office Sir Tom Scholar · HM Treasury Vicky Rock · HM Treasury
Title HC No. Published Items Response
Thirty-Seventh Report - Whole of Government Accounts 2018–19 HC 655 22 Jan 2021 24 Responded
Recommendations & Conclusions
24 results
2 Conclusion
Thirty-Seventh Report - Whole of G…
There is an apparent lack of ownership by the Treasury of the analysis and scenario...
There is an apparent lack of ownership by the Treasury of the analysis and scenario planning activities necessary to manage the impact of COVID-19 on government finances. The scale of the likely increase in government borrowing to fund government’s response … Read more
Government Response
2: PAC conclusion: There is an apparent lack of ownership by the Treasury of the analysis and scenario planning activities necessary to manage the impact of COVID-19 on government finances. … Read more
HM Treasury
View details
3 Conclusion
Thirty-Seventh Report - Whole of G…
The WGA does not provide assurance that significant risks to the UK’s financial sustainability are...
The WGA does not provide assurance that significant risks to the UK’s financial sustainability are well managed. A key consideration for any organisation is its financial sustainability. There are several government liabilities disclosed in the WGA that, due to their … Read more
Government Response
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 3.2 HM Treasury works closely with other government departments to ensure that public funds are managed effectively … Read more
HM Treasury
View details
4 Recommendation
Thirty-Seventh Report - Whole of G…
The financial sustainability of some local authorities presents a significant risk to government.
The financial sustainability of some local authorities presents a significant risk to government. While local authorities have autonomy over their spending, the Treasury is the ‘funder of last resort’ should a local authority become insolvent. As COVID-19 has increased the … Read more
HM Treasury
View details
5 Conclusion
Thirty-Seventh Report - Whole of G…
The Treasury has aspirations to standardise financial reporting across government but has not set out...
The Treasury has aspirations to standardise financial reporting across government but has not set out how this will make the WGA more useful or accessible. The Treasury faces difficulties when trying to categorise transactions and balances reported by over 9,000 … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 5.2 The Government Finance Function is developing a performance framework to measure progress against the strategic deliverables … Read more
HM Treasury
View details
6 Recommendation
Thirty-Seventh Report - Whole of G…
The quality of the next WGA will suffer if the Treasury does not resolve challenges...
The quality of the next WGA will suffer if the Treasury does not resolve challenges in its accounts production process. In recent years, the WGA has improved in quality and the Treasury has taken steps to address our recommendations, such … Read more
HM Treasury
View details
1 Conclusion
Thirty-Seventh Report - Whole of G…
Based on the Whole of Government Accounts (WGA) for the year ended 31 March 2019,...
Based on the Whole of Government Accounts (WGA) for the year ended 31 March 2019, we took evidence from HM Treasury (the Treasury) on 19 November 2020.1
Government Response
Based on the Whole of Government Accounts (WGA) for the year ended 31 March 2019, the Committee took evidence, on Thursday 19 November 2020 from the HM Treasury. The Committee … Read more
HM Treasury
View details
7 Conclusion
Thirty-Seventh Report - Whole of G…
The WGA 2018–19 disclosures relating to COVID-19 relied heavily on a summary of a report...
The WGA 2018–19 disclosures relating to COVID-19 relied heavily on a summary of a report produced by the National Audit Office.10 The Treasury did not attempt to explain to Parliament or the user of the accounts how it was managing … Read more
Government Response
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 1.2 The government is committed to transparency on fiscal risks and welcomes independent scrutiny of risk exposure. … Read more
HM Treasury
View details
8 Conclusion
Thirty-Seventh Report - Whole of G…
The WGA discloses a number of significant liabilities that due to their size and nature...
The WGA discloses a number of significant liabilities that due to their size and nature pose unique risks to the UK’s financial sustainability and government’s ability to achieve value for money. At 31 March 2019, the UK’s liability in relation … Read more
Government Response
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 3.2 HM Treasury works closely with other government departments to ensure that public funds are managed effectively … Read more
HM Treasury
View details
9 Conclusion
Thirty-Seventh Report - Whole of G…
We have recently raised concerns regarding the uncertainty of the estimated costs of decommissioning the...
We have recently raised concerns regarding the uncertainty of the estimated costs of decommissioning the civil nuclear estate and highlighted a shortage of skills at the Nuclear Decommissioning Authority (NDA) and a lack of oversight from the Department for Business, … Read more
HM Treasury
View details
10 Conclusion
Thirty-Seventh Report - Whole of G…
Regarding the provision for clinical negligence, the WGA shows a levelling off of new cases...
Regarding the provision for clinical negligence, the WGA shows a levelling off of new cases and explains that in the second year of its new strategy to tackle clinical negligence laid out in April 2017, NHS Resolution mediated 380 cases, … Read more
Government Response
3.3 The Balance Sheet Review, which concluded in November 2020, aimed to strengthen control of long-term risks and the costs of liabilities, to identify opportunities to dispose of assets that … Read more
HM Treasury
View details
11 Conclusion
Thirty-Seventh Report - Whole of G…
The scale of the likely increase in government borrowing to fund government’s response to COVID-19...
The scale of the likely increase in government borrowing to fund government’s response to COVID-19 is a significant new challenge to the Treasury’s objective to place the public finances on a sustainable footing.22 In its report on Evaluating the government … Read more
Government Response
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 1.2 The government is committed to transparency on fiscal risks and welcomes independent scrutiny of risk exposure. … Read more
HM Treasury
View details
12 Conclusion
Thirty-Seventh Report - Whole of G…
We were therefore interested in what analysis the Treasury had now been conducting in order...
We were therefore interested in what analysis the Treasury had now been conducting in order to give assurance that it had a handle on the fiscal risks the pandemic poses to the UK economy and fiscal sustainability. We asked what … Read more
Government Response
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 1.2 The government is committed to transparency on fiscal risks and welcomes independent scrutiny of risk exposure. … Read more
HM Treasury
View details
13 Conclusion
Thirty-Seventh Report - Whole of G…
With the UK’s debt as a proportion of GDP above 100%, any increases in interest...
With the UK’s debt as a proportion of GDP above 100%, any increases in interest rates would have a significant impact on the economy and government spending. When asked whether it was modelling for interest rate increases, the Treasury confirmed … Read more
Government Response
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 1.2 The government is committed to transparency on fiscal risks and welcomes independent scrutiny of risk exposure. … Read more
HM Treasury
View details
14 Conclusion
Thirty-Seventh Report - Whole of G…
Although at some points during our evidence session the Treasury stated that it was conducting...
Although at some points during our evidence session the Treasury stated that it was conducting forecasting and scenario planning, it was not clear what this entailed, how this differed from work by third parties such as the OBR, and whether … Read more
Government Response
2: PAC conclusion: There is an apparent lack of ownership by the Treasury of the analysis and scenario planning activities necessary to manage the impact of COVID-19 on government finances. … Read more
HM Treasury
View details
15 Conclusion
Thirty-Seventh Report - Whole of G…
If debt payments increase, or tax receipts decrease, there will be a decrease in budget...
If debt payments increase, or tax receipts decrease, there will be a decrease in budget available for other public spending.29 We asked the Treasury whether it had identified what current projects may need to be cancelled, or what potential investments … Read more
Government Response
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 1.2 The government is committed to transparency on fiscal risks and welcomes independent scrutiny of risk exposure. … Read more
HM Treasury
View details
16 Conclusion
Thirty-Seventh Report - Whole of G…
As the UK Government has a devolved structure, local authorities have significant autonomy over their...
As the UK Government has a devolved structure, local authorities have significant autonomy over their spending and have powers to invest in commercial property. We have, over a number of years, raised concerns over the behaviour of local authorities with … Read more
Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 4.2 The UK, unlike most other countries, has a long-established practice of setting its fiscal objectives by … Read more
HM Treasury
View details
17 Conclusion
Thirty-Seventh Report - Whole of G…
In September 2020, Sir Tony Redmond published his report Independent Review into the Oversight of...
In September 2020, Sir Tony Redmond published his report Independent Review into the Oversight of Local Audit and the Transparency of Local Authority Financial Reporting (Redmond Review), noting that the local audit market is very fragile.33 He concluded that current … Read more
Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 4.2 The UK, unlike most other countries, has a long-established practice of setting its fiscal objectives by … Read more
HM Treasury
View details
18 Conclusion
Thirty-Seventh Report - Whole of G…
The Treasury confirmed to us that it ultimately bears the financial risk for local authorities.
The Treasury confirmed to us that it ultimately bears the financial risk for local authorities. We expressed concerns about the level of oversight and control that the Treasury is exercising and whether it has a sufficient handle on this issue. … Read more
Government Response
4: PAC conclusion: The financial sustainability of some local authorities presents a significant risk to government. 4: PAC recommendation: The Treasury should work with the Ministry of Housing, Communities and … Read more
HM Treasury
View details
19 Conclusion
Thirty-Seventh Report - Whole of G…
We have previously recommended that financial reporting within the WGA should be improved by providing...
We have previously recommended that financial reporting within the WGA should be improved by providing more detailed disclosures to ensure that users of the account have the comprehensive information needed to understand the public finances.39 WGA is increasingly important to … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 5.2 The Government Finance Function is developing a performance framework to measure progress against the strategic deliverables … Read more
HM Treasury
View details
20 Conclusion
Thirty-Seventh Report - Whole of G…
For the WGA to record the impact of COVID-19, government bodies will need to record...
For the WGA to record the impact of COVID-19, government bodies will need to record costs in a manner that allows the increase in spending due to COVID-19 to be identifiable from any other changes in spending.42 The Treasury outlined … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 5.2 The Government Finance Function is developing a performance framework to measure progress against the strategic deliverables … Read more
HM Treasury
View details
21 Conclusion
Thirty-Seventh Report - Whole of G…
Previously the Treasury has expressed dissatisfaction at the level of expenditure across all types of...
Previously the Treasury has expressed dissatisfaction at the level of expenditure across all types of government spending that is classified as miscellaneous or other by WGA bodies, as it prevents the WGA providing more granular information. The Treasury stated that … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 5.2 The Government Finance Function is developing a performance framework to measure progress against the strategic deliverables … Read more
HM Treasury
View details
22 Conclusion
Thirty-Seventh Report - Whole of G…
We see WGA as a valuable and important document for both providing transparency and holding...
We see WGA as a valuable and important document for both providing transparency and holding the government to account. In recent years, the Treasury has improved the quality of the WGA and has taken steps to address our recommendations, such … Read more
HM Treasury
View details
23 Conclusion
Thirty-Seventh Report - Whole of G…
The NAO highlighted in the C&AG Report for the WGA for the year ended 31...
The NAO highlighted in the C&AG Report for the WGA for the year ended 31 March 2019that the failure to complete local government audits in a timely fashion led to both an increasing number of bodies whose financial information is … Read more
Government Response
4.3 The WGA 2019-20 performance report will include additional information showing how fiscal risks are monitored and managed in the local government sector and bring in wider information on finances … Read more
HM Treasury
View details
24 Conclusion
Thirty-Seventh Report - Whole of G…
We expect the COVID-19 pandemic to exacerbate these challenges to the timely production of the...
We expect the COVID-19 pandemic to exacerbate these challenges to the timely production of the WGA in future. The Treasury accepted that it can only start to produce the account once it receives a critical mass of audited returns from … Read more
Government Response
4.3 The WGA 2019-20 performance report will include additional information showing how fiscal risks are monitored and managed in the local government sector and bring in wider information on finances … Read more
HM Treasury
View details
Correspondence 4 letters
2 Nov 2021 Correspondence Catherine Little, Director General, Public Spending Head of Government Finance Function, re Whole of Government Accounts (WGA) 2019-20, dated 23 October 2021
Parliament page
14 Sep 2021 Correspondence Catherine Little, Director General, Public Spending Head of Government Finance Function, re Whole of Government Accounts (WGA) 2019-20, dated 9 September 2021
Parliament page
10 Sep 2021 Correspondence from Dame Meg Hillier, Chair, Committee of Public Account, re Whole of Government Accounts, dated 31 August
Parliament page
20 Jul 2021 Correspondence Catherine Little, Director General, Public Spending Head of Government Finance Function, re Whole of Government Accounts (WGA) 2019-20, dated 13 July 2021
Parliament page