17 Acknowledged

We also challenged MHCLG on how reorganisation in local government will affect WGA.32 The Local...

Conclusion
We also challenged MHCLG on how reorganisation in local government will affect WGA.32 The Local Government Reorganisation ambition is to simplify local government by ending the two-tier system and establishing new single-tier unitary councils.33 MHCLG confirmed that accounts for areas currently operating under the two-tier system will continue to be prepared in the usual manner up to and including the 2027–28 financial year and from 2028–29 onwards, a single consolidated set of accounts is expected for each new unitary authority.34 While acknowledging the inherent complexity of this transition, MHCLG emphasised that reorganisation will not constitute a justification for delays. MHCLG confirmed that it considers the associated risks manageable.35 25 MHCLG, Implementing the new local audit system – a Transition Plan, November 2025; English Devolution and Community Empowerment Bill 26 Q 23 27 HC 367, Q 55 28 Q 23 29 Q 28 30 Q 29 31 Q 20 32 Q 25 33 MHCLG, Local government reorganisation: Policy and programme updates, accessed 18 February 2026 34 Q 25 35 Qq 26-27 13 3 Maximising WGA insights Disclosures of long-term liabilities
Government Response Summary
The government agrees with the Committee’s observations, acknowledging the impact of the Local Government Reorganisation programme on WGA submissions from 2028-29 onwards. It states that engagement is ongoing to identify issues and mitigate risks, with a target implementation date of April 2029 for the full reorganisation.
Government Response
Acknowledged
HM Government Acknowledged
3.4 The government agrees with the Committee’s recommendation. Target implementation date: April 2029 3.5 The Treasury acknowledges the Committee’s observations regarding the impact of the Local Government Reorganisation (LGR) programme on future WGA submissions. The programme is expected to lead to significant structural changes within the local government sector, with consequential effects on WGA data collection processes from WGA 2028-29 onwards once the reorganisation programme is fully in place. 3.6 The extended implementation period provides the Treasury with sufficient time to ensure that the list of entities required to submit data reflects the restructured local authority landscape. Engagement between the Treasury, MHCLG, and affected local government bodies is ongoing and will continue to identify issues early, support effective preparation, and mitigate risks to future submissions. 3.7 The Treasury will continue to deliver training and guidance to entities to support high‑quality submissions. As LGR reduces the overall number of submitting bodies, the Treasury will be able to offer a more tailored level of support than is possible under current arrangements. 3.8 The government expects that the consolidation of multiple bodies into new unitary authorities will result in a substantial reduction in the number of individual WGA submissions required. While consolidation work at the local authority level at the beginning may be more complex, the overall complexity of consolidation at WGA level is therefore expected to decrease over time. 3.9 The introduction of a new, more streamlined method for submitting financial data across all WGA submissions will further support the sector during this transition by reducing manual inputs and improving the alignment of local authority data with WGA requirements. 3.10 The government will continue to monitor the impact of LGR on WGA processes and will take further steps as required to maintain the quality, completeness, and reliability of WGA data.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.4 yrs
Report published 04 Mar 2026