Devolution plans raise questions over local spending oversight
Ministers are weighing scrutiny and audit options as the government prepares to set out plans for devolving more revenue to English mayors.
The UK government is considering how to hold English mayors and council leaders accountable for additional revenue devolved to them. The Guardian reports that options under discussion include stronger parliamentary scrutiny, enhanced reporting requirements and a dedicated local government audit body.
The paper also reports that voter recall of mayors has been mooted. None of the options is confirmed policy. A government white paper on devolution is expected later this month, with plans to transfer more income tax revenue to regional mayors.
Meg Hillier, chair of the Treasury Select Committee, said scrutiny structures should be established alongside any transfer of spending powers. She argued that clear, transparent mechanisms are needed to hold mayors accountable for spending decisions, including between elections.
The Audit Commission, which specifically oversaw local government spending, was abolished in 2015 and its functions were distributed among other bodies.
The Institute for Fiscal Studies has called for equalisation payments to limit funding gaps between richer and poorer areas if revenue is devolved. It says careful design would be needed to prevent areas with larger income tax bases pulling ahead.
