69th Report - Whole of Government Accounts 2023-24

MHCLG has written to the Committee alongside the Treasury Minute with the information requested in recommendation (a). The Treasury has expanded its analysis of the number of missing entities to cover a wider range of years and will continue to keep under review how further information might be incorporated into future WGA publications to enhance transparency.

MHCLG has written separately to the Committee alongside the Treasury Minute with the information requested in recommendation (a). The government has a clear ambition to clear all backstop-related disclaimed opinions by the end of 2027-28 and has published a transition plan setting out the arrangements for the reformed local audit system to help meet this objective.

The Treasury will expand the section on undiscounted liabilities in the 2024-25 WGA by presenting provisions on a fully undiscounted basis, and will also provide an alternative presentation using a flat 2% discount rate applied on a net-of-CPI basis to illustrate the impact of discounting.

The Treasury will provide additional information on devolved expenditure in the performance report section of the 2024-25 accounts, giving clearer visibility of devolved spending across the nations of the UK. The Scottish Government has committed to strengthening its oversight and support arrangements to improve future performance.

The government agrees with the Committee and states the recommendation is implemented, highlighting that it has already improved WGA accessibility through new sections, additional disclosures, a supplementary handbook, and teach-in sessions for Parliamentary staff. It also notes ongoing reviews and monitoring of the WGA's composition and compliance.

The government states it agrees with the Committee's implied recommendation regarding the Whole of Government Accounts process and that it has already been implemented, citing ongoing wider reforms in the local audit sector and actions taken to improve WGA accessibility and compliance.

The government agrees with the Committee's observation, stating that the local audit backstop programme is already making significant progress in improving timely publication of accounts, with increasing proportions of bodies publishing on time. It expects the local audit position to improve over the next two to three years and will continue engagement with local bodies.

The government agrees with the implied recommendation regarding the transparency of long-term liabilities in the WGA. It commits to expanding the section on undiscounted liabilities in the 2024-25 WGA, providing an alternative presentation using a flat 2% discount rate, and will work with GAD to include this information for key provisions, with a target implementation date of June 2026.

The government agrees and commits to enhancing the transparency of long-term liabilities in future WGA publications by working with GAD to separately identify discount rate impacts and expanding the section on undiscounted liabilities in the 2024-25 WGA.

The government accepts the recommendation to publish both discounted and undiscounted values for long-term liabilities, with a target implementation date of June 2026, and will expand the 2024-25 WGA to present provisions on a fully undiscounted basis.

The government agrees with the implied recommendation for greater transparency in long-term liabilities. It commits to expanding the section on undiscounted liabilities in the 2024-25 WGA, providing an alternative presentation using a flat 2% discount rate, and will work with GAD to include this information for key provisions, with a target implementation date of June 2026.

The government agrees with the recommendation but indicates that existing measures, such as the public service schemes introduced in 2014-2015 with changed retirement ages and contributions, and the ongoing Cost Control Mechanism, already address the need to manage public service pension liabilities.

The government agrees with the Committee's observation, stating that ongoing wider reforms in the local audit sector and existing Treasury actions to improve WGA accessibility and compliance are expected to address weaknesses and ensure the WGA fulfils its intended purpose. They also state the recommendation has been implemented.

The government agrees with the recommendation and commits to providing additional information on devolved expenditure in the performance report section of the 2024-25 accounts, with a target implementation date of June 2026, to give clearer visibility of devolved spending.

The government agrees with the committee's concern, committing to provide additional information on devolved expenditure in the performance report section of the 2024-25 accounts by June 2026 to enhance transparency and visibility of Scottish public sector spending.

The government agrees, with a target implementation date of June 2026. The Treasury will provide additional information on devolved expenditure in the performance report section of the 2024-25 accounts to enhance transparency and understanding of devolved spending.