National Audit Office Declines to Approve UK Government Accounts Over Local Audit Failures

An unprecedented backlog in council audits has left billions in public spending unverified, raising concerns about financial oversight and accountability.

The National Audit Office (NAO) has refused to sign off the Whole of Government Accounts for 2022-23 due to unreliable financial data from English local authorities.
Only 10% of England's 426 councils submitted audited accounts, with nearly half failing to provide any financial data and the rest submitting unaudited figures.
The crisis stems from the 2015 abolition of the Audit Commission, which had provided oversight of council finances, leaving audits to an under-resourced private sector market.
Since 2020, eight councils have effectively declared bankruptcy, with risky investments and financial mismanagement cited as major contributing factors.
Efforts to address the backlog are underway, but the NAO warns the issue will persist into 2023-24, complicating government oversight and public accountability.