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Financial and service sustainability

Local services make a huge difference to people's health, wellbeing and quality of life. Yet there are indications that local services are not sustainable – economically, socially or environmentally.

In the NHS, organisations are allowed to spend more, or less, than the money they have been given if needed to ensure patient care. As a result, an increasing proportion of Trusts are rated at "high risk of financial failure". Local councils, by contrast, are legally required to both keep within budget and deliver certain services. With a 37% cut in central funding over the five years since 2010, councils have had to cut back other services, and longer-term investment and innovation.

Whether budget cuts put pressure on services or on finances, radical change in the way services are delivered is needed to make them more effective and cheaper. Some solutions being tried include joining up the delivery of different services, delivering services across bigger regions, and delivering services digitally.

Key NAO publications:

Financial sustainability of local authorities 2014 (Nov 2014)
The Impact of Funding Reductions on Local Authorities (Nov 2014)
Council Tax Support (Dec 2013)

Autumn 2021

Financial sustainability of schools in England

This study will examine whether the Department for Education is supporting schools in a way that improves their financial sustainability.

Posted 26 July 2021 in: Education and skills

Performance Improvement area(s): Financial and service sustainability

Home Office annual report and accounts 2020-2021

The National Audit Office has reported on the 2020-2021 accounts of the Home Office.

Sector(s): Government, efficiency and transparency

Performance Improvement area(s): Financial and service sustainability

Department(s): Home Office

Published:
14 Jul 2021

Investigation into the British Business Bank’s accreditation of Greensill Capital

This investigation looks at the British Business Bank’s approval of Greensill Capital’s access to government business support schemes.

Sector(s): Business and enterprise, Financial services, Private Finance

Performance Improvement area(s): COVID-19, Financial and risk management, Financial and service sustainability

Department(s): Department for Business, Energy and Industrial Strategy, HM treasury

Published:
7 Jul 2021

Optimising the defence estate

This report examines the Ministry of Defence’s progress in optimising its estate and disposing of sites that are not needed.

Sector(s): Infrastructure

Performance Improvement area(s): Cost reduction and affordability, Financial and service sustainability, Managing assets and liabilities, People and Operational Management

Department(s): Ministry of Defence

Published:
11 Jun 2021

Improving operational delivery in government

This guide will help senior leaders in government departments to manage and improve the way public services are delivered.

Sector(s): Borders and immigration, Government, efficiency and transparency, Local services, Welfare, Pensions and Employment

Performance Improvement area(s): Cost reduction and affordability, Customer management, Financial and service sustainability, Operations and process management, Performance measurement, Strategic centre of government, Transforming public services

Department(s): Cabinet Office, HM treasury

Published:
30 Mar 2021

Public Service Pensions

This report outlines how the public service pensions landscape has changed since the Hutton Review and highlights future challenges.

Sector(s): Central Finance and Treasury, Welfare, Pensions and Employment

Performance Improvement area(s): Cost reduction and affordability, Financial and service sustainability

Department(s): Department for Education, Department of Health and Social Care, HM treasury, Ministry of Defence

Published:
19 Mar 2021

Local government finance in the pandemic

This report examines whether the government secured financial sustainability across the local authority sector during COVID-19.

Sector(s): Government, efficiency and transparency, Local services

Performance Improvement area(s): Accountability in local service delivery, COVID-19, Financial and risk management, Financial and service sustainability, Local service delivery

Department(s): HM treasury, Ministry of Housing, Communities and Local Government

Published:
10 Mar 2021

The production and distribution of cash

This report examines the role played by the public bodies involved in operating and overseeing the cash system.

Sector(s): Central Finance and Treasury

Performance Improvement area(s): Commercial and regulation, Financial and service sustainability

Department(s): HM treasury

Published:
18 Sep 2020

Financial sustainability of colleges in England

This report focuses on the financial sustainability of further education and sixth-form colleges.

Sector(s): Education and skills

Performance Improvement area(s): Financial and service sustainability

Department(s): Department for Education

Published:
16 Sep 2020

Managing PFI assets and services as contracts end

This report provides information on managing PFI contracts when they end and considers whether government is preparing for expiry appropriately.

Sector(s): Central Finance and Treasury, Local services, Regulation, consumers and competition

Performance Improvement area(s): Contract lifecycle, Financial and service sustainability, Infrastructure finance, Local service delivery, Major project delivery, Managing assets and liabilities, Oversight of service delivery, Performance measurement

Department(s): Cabinet Office, HM treasury

Published:
5 Jun 2020