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IMPACT
As taxpayers, we are sowers and reapers of public services. The ongoing Covid-19 pandemic has put considerable pressure on governments, financially and in terms of maintaining the effective delivery of public services. The UK’s experience with Whole of Government Accounts (WGA) suggests that, first, while not a panacea, WGA has highlighted assets and liabilities (such as future pension liabilities, clinical negligence claims and public private partnership obligations) that are currently not captured under national accounting principles. Second, there is evidence emerging (albeit slowly) that WGA aids planning, facilitates decisions on the use of assets, enhances the transparency of public sector finances and contributes to conversations on long-term risk management and fiscal policy. Against a backdrop of increasing future obligations and rising debt levels, this article explains how WGA information can aid government decision-making.
ABSTRACT
November 2021 marked 10 years since the publication of the first UK Whole of Government Accounts (WGA), representing the first set of audited financial statements prepared in accordance with international accounting standards for the UK public sector. With governments around the world investing substantial resources into modernizing their financial reporting practices and systems, it is important to consider whether these changes will deliver value for money and will result in tangible benefits. As calls for further research into what public sector accounting reforms bring practical benefits, this new development article considers the usefulness of WGA, outlining what WGA makes visible, its limitations and the challenges that lie ahead.
Disclosure statement
No potential conflict of interest was reported by the author.