Acrimony lingers over Audit Commission demise
Eric Pickles has defended his decision to scrap the Audit Commission, telling the Commons the local government spending watchdog made “errors of judgement”.
Nearly a month has passed since news of the Commission’s fate was revealed, but the communities and local government secretary was summoned to the despatch box by Labour MPs angry at the decision following an urgent question.
Mr Pickles had attacked the Audit Commission’s “callous” management and did not step back from his critical approach in today’s session.
Labour’s shadow communities secretary John Denham accused Mr Pickles of encouraging a “cosy incestuous relationship between local councils and auditors” and said it was unfair of Mr Pickles to suggest a Commission away-day at Newmarket race course took place on a race day.
Mr Pickles replied by citing the Audit Commission’s £40,000 spending on pot plants, £4,600 on bagels and £6,000 on a Reform Club dinner to celebrate the Commission’s 25th anniversary.
“They may have made errors of judgement but this is about saving the audit function,” Mr Pickles said.
His department claims axing the Commission will save £50 million a year. Mr Denham said today: “The House may share my fear this move will end up costing local taxpayers far more than it will save.”
Mr Pickles’ predecessor in government questioned whether the private sector had the capacity to carry out audit functions at the same cost as the public sector, to which the communities secretary replied: “I expect it to be a lot cheaper.”
He continued: “It was once a great organisation. It did make a change to local government but local government has changed itself and it’s time to move on… it’s time to pass the baton to the NAO.”
Edward Leigh, who chaired the public accounts committee in the last parliament, said he welcomed Mr Pickles’ move. He sought assurances the National Audit Office (NAO) would take up the Audit Commission’s value-for-money functions.
Mr Pickles replied by praising the “rigour” of the NAO and added: “What the coalition government is doing is bringing accountability to this House.”
Labour’s Margaret Hodge, the current chair of the PAC, pointed out the NAO was not a department of government but instead accountable to parliament.
“He cannot instruct the NAO to play any particular role,” she said.
