New development: Ten years of consolidated accounts in the United Kingdom public sector—taking stock

Abstract

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.