Public Finance

(asked on 23rd June 2025) - View Source

Question to the HM Treasury:

To ask His Majesty's Government what changes have been made to the duties, responsibilities or expectations of accounting officers following the publication of the "Dear Accounting Officer" letter 02/25 on 12 June, and the revised version of Managing Public Money to which it refers.


Answered by
Lord Livermore Portrait
Lord Livermore
Financial Secretary (HM Treasury)
This question was answered on 7th July 2025

The key themes and principles underpinning previous versions of Managing Public Money are unchanged, and likewise the core duties, responsibilities and expectations of accounting officers remain the same.

The update to Managing Public Money incorporates a number of clarifications and changes, and accounting officers should ensure these are followed as appropriate as part of their duties to ensure regularity and propriety in the use of public resources.

As set out in the Dear Accounting Officer letter DAO 02/25, the 2025 edition of Managing Public Money includes the following revisions and additions.

  1. New guidance on the circumstances in which it might be appropriate to ‘pre-fund’ future liabilities, aligned with guidance set out in Dear Accounting Officer letter 05/23.
  2. Revised guidance on subsidy control to reflect changes to the wider UK subsidy control regime.
  3. Updated guidance on how accounting officers should manage risk in their organisations.
  4. Revised references and guidance on the importance of evaluation in government.
  5. Updated guidance on the use of models in government.
  6. Updated guidance on access to information by the National Audit Office, and clarifying rules on communication with the Public Accounts Committee.
  7. Revised guidance on the propriety of using the Companies Act 2006 to establish government owned companies.
  8. Revisions permitting the setting of delegations by the Treasury for the approval of special severance payments.
  9. Revised guidance, to align with that in Consolidated Budgeting Guidance, on the disposal of public sector land.
  10. An uprated threshold for the definition of ‘modest’ expenditure which may rest on the sole authority of the Supply and Appropriation Act, to reflect inflation.
  11. Updated guidance on fees and charges reporting to ensure that these are backed by appropriate powers.
  12. Updated guidance on the treatment of Public Corporations.
  13. Updated wording to confirm the scope of the rules in Managing Public Money – in line with existing Clear Line of Sight guidance.
  14. More detailed definitions of Regularity, Propriety, Value for Money and Feasibility.
  15. Wider corrections and amendments including updated links to wider government guidance.

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