As such, MHCLG told us that it had a good understanding of the financial pressures facing particular local authorities and that it was confident in knowing where the issues were.39 MHCLG did note though that quirks can occur, referencing Barnet Council issuing a s114 notice where the council made unlawful transactions relating to pensions in 2020.40 MHCLG was not aware of the issue before the council declared it.41 We highlighted to MHCLG the importance of understanding where local authorities are under pressure from increasing expenditure, on SEND for example, with which it agreed.42 35 WGA0001 36 For example, House of Commons Library, Why are local authorities going ‘bankrupt’?, July 2024 37 Q 17 38 Q 31 39 Qq 31, 34 40 Letter from MHCLG to the Committee of Public Accounts, 6 February 2025 41 Q 34 42 Q 38 13 Increasing numbers of late or uncompleted Local Authority accounts makes it more difficult for councillors or their officers to spot irregularities or trends which could enable them to take earlier interventions to prevent section 114 notices. When this happens, services tend to be reduced and council tax increased.