Provisional Local Government Finance Settlement

Meg Hillier Excerpts

Wednesday 18th December 2024 Commons Chamber

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I welcome this commitment to local government and recognise that the Minister has a big job to do in addressing the challenges that have arisen because of the last 14 years—not least in local government audit. I welcome what seems to be a commitment to embracing the Redmond review. Will he give more detail about what will replace the Office for Local Government?

[Jim McMahon]

Most in the sector would agree that Oflog—the Office for Local Government—had a vague remit that was an expensive way of gathering data. In the end, if it were to be developed, we could risk mission creep whereby its remit would verge into the areas that local authorities so disliked about the former Audit Commission. We are trying to get the right balance between the early warning system that enables us to see which individual councils are under stress, and, importantly, noting any developing systemic threats or themes for which central Government might have to take much earlier action. We want to rebuild that early warning system.

However, we are absolutely clear that we are not replacing the Audit Commission. For one, it was hugely expensive, and we need to ensure that any money goes to the frontline of local public services. Honestly, councils do not need inspectors going in to mark their homework when they should be trusted to get on and do the job well. People understand what the National Audit Office is, so we hope that they will understand and see the benefit of a local audit office, and that it will be embraced by the sector.