Require public bodies to achieve unqualified audit opinion before raising taxes

Require public bodies whose accounts cannot be certified with an unqualified opinion by auditors to be banned from increasing taxes or receiving a larger budget the following year.

If this happens for two consecutive years, all elected representatives for that authority should be unable to stand for re-election.

The UK Government's accounts have not been certified with an unqualified opinion by auditors for three consecutive years. The DWP, HMRC and Ministry of Defence have repeatedly failed to achieve entirely unqualified audits, while hundreds of councils each year cannot get their accounts signed off. The National Audit Office estimates up to £81 billion is lost annually to fraud and error. Yet politicians continue raising our taxes while claiming they need more money. We believe it's time to restore financial accountability.

The authority to set rates of taxation ultimately rests with Parliament, which scrutinises and approves the Finance Bill introduced by the Chancellor of the Exchequer. Similarly, departmental budgets are set through the established Spending Review process and formally approved by Parliament each year through Supply and Appropriation Bills introduced by Treasury minsters. This allows funding decisions to be considered in the round, taking account of the Government's priorities, public service needs, and the wider fiscal position.

The Government recognises that strong financial management and transparency are vital to maintaining confidence in how public money is spent. The National Audit Office supports Parliament in holding government to account by auditing central government accounts and reporting on whether public money has been used efficiently, effectively, and economically.

While audit opinions provide important information, a qualified audit opinion can arise for a variety of reasons, and does not mean that public services are not being delivered effectively. Across government, departments work closely with auditors to address issues that have led to qualifications.

The Government also recognises the importance of high-quality local services and believes in empowering local decision-makers, including by ensuring that local authorities have the flexibility to generate their own income through council tax. It is for local authorities to balance the need for additional revenue from increases in council tax against the additional burden on their residents.