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As part of central government's decision to give more power to Councils and other local bodies (eg in healthcare), local organisations now decide how to spend hundreds of billion each year. Parliament and the public expect this spending to be efficient and effective and achieve the intended aims. Central government sets these aims, while local organisations decide how to spend the funding based on local needs and priorities. The public must be told how the money is spent and what outcomes have been achieved so that local electorates can be sure the money is spent well and can question decisions.

Central government must also be sure that the spending is achieving the desired outcomes and value for money. It is also responsible for protecting customers and making sure that where services fail, customers can get redress, including from local government and health Ombudsmen.

Key NAO publications:

• Public service markets: Putting things right when they go wrong (Jun 2015);
• Local government funding: Assurance to Parliament (Jun 2014)