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Think tank lambasts Treasury over accountability

The Treasury has caused significant problems for local government finances by the way it works, according to a top think tank.

The Institute for Government issued a blistering attack on the department for its approach to public spending warning that it is too remote to be effective. The analysis was in a new report called The Treasury’s responsibility for the results of public spending.

It said “There is much cause for concern: spending and accountability are often not adequately lined up; information is not used properly to inform decisions; the government does too little to understand or plan the impact of spending on metro or county areas; spending is planned wastefully; and the government does not explain its intentions clearly. The Treasury’s current ways of working contribute strongly to these problems.”

The local government financial crisis has not been caused by a lack of funding: that’s just a symptom of the inherent conflict of having independent local authorities within a highly centralised state, argues Conrad Hall.

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