Fiscal Responsibility Bill - Briefing for the Lords Second Reading

The Fiscal Responsibility Bill sets targets for the Government to cut the deficit. The ICAEW briefed the House of Lords ahead of their debate on the Bill on 10 February, calling for more transparency in public sector finances and better scrutiny of public spending.

• ICAEW briefing for the Lords Second Reading debate of the Fiscal Responsibility Bill
• The Fiscal Responsibility Bill

Our concerns about the Bill:

• The lack of a long-term, sustainable foundation for better management of public sector finances;
  
• The need for robust, transparent information on public sector finances and liabilities; and
  
• The limited opportunities in the Bill for parliamentary scrutiny of public spending.

Our recommendations:

• The House should consider whether the stated target for reducing net borrowing will be sufficient to enable sustainable public finances;
  
• The Bill should require the Treasury to report on progress in delivering Whole of Government Accounts; and
  
• The Bill should enable parliamentary select committees to call for evidence on the costs and outputs of departmental spending programmes, and how that programme links to an overall strategy to meet the duties imposed by the Bill.

The ICAEW is a centre of expertise on financial management and accounting issues, and we take a strong interest in the effective reform of the public sector and better management of public finances. 

Our manifesto, ‘Going for Growth’, contains recommendations on how public spending could be improved, developed with the Chartered Institute of Public Finance and Accountancy.

For more information, please contact Sarah Buckley.