By Vivienne Russell
9 November 2010
The communities and local government select committee today launched an inquiry into the abolition of the Audit Commission.
The committee is, in the first instance, seeking written submissions of evidence, and will begin to take oral evidence in the New Year.
The inquiry will examine future arrangements for all the areas that were previously the responsibility of the Audit Commission, including: annual audits of local authority expenditure; oversight and inspection of local authority performance; and value for money studies.
Committee chair and Labour MP Clive Betts told Public Finance that the abolition of the Audit Commission was a ‘big issue’.
‘The government is taking a very hands-off approach to audit and inspection and we want to explore how that will work in practice,’ he said.
Betts added that citizens needed to be reassured that auditors appointed by councils would be properly impartial and would continue to produce independent public interest reports.
‘Ministers have given contradictory answers on this,’ he said. ‘The auditor is independent and the public have to have confidence in them. Where is the guarantee of independence?’
He added: ‘We will also be looking closely to ensure that the useful work which the commission does through value-for-money studies can be continued, for the good of local government as a whole.’
Written submissions are invited on the principles involved in the abolition of the Audit Commission and the practical arrangements that might be put in its place.
‘We want to hear from all key stakeholders within and outside local government itself, for insights about the consequence of this decision and about the steps which will be necessary to ensure full and appropriate accountability for local authority expenditure in the future,’ Betts said.
Submissions
should be no more than 4,000 words in length and need to be emailed to the
committee by January 6 2011.
A DCLG spokesperson said: 'We are happy to work with the select committee and ensure proper Parliamentary oversight of our plans to scale back inspection, red tape and transfer the audit functions of the Audit Commission to the private sector.'
