The head of Britain's spending watchdog has delivered a sobering assessment of the government's financial management, warning that significant risks are building across Whitehall departments.
In an exclusive interview with Labour MP David Lammy, National Audit Office chief Gareth Davies revealed that his organisation has issued an unprecedented number of formal warnings to government departments about their financial controls and accountability measures.
Red Flags Across Government
Davies expressed particular concern about several key areas:
- Inadequate financial controls in major departments
- Growing pressure on public services affecting delivery
- Complex challenges requiring cross-government coordination
- Potential for wasted taxpayer money without proper oversight
The NAO chief emphasised that while his role isn't to comment on political decisions, he has a duty to ensure public money is properly accounted for and spent effectively.
Accountability Under Scrutiny
'What worries me most,' Davies told Lammy, 'is when we see the same problems recurring across different departments. It suggests systemic issues that need addressing at the highest levels.'
The interview revealed that the NAO has been increasingly active in challenging departments, with Davies noting that formal qualifications on accounts - essentially red flags about financial management - have become more common in recent years.
Cross-Party Concerns
David Lammy, who chairs the All-Party Parliamentary Group on responsible government, described the revelations as 'deeply troubling' and called for urgent action to address the concerns raised.
'When the government's own watchdog is issuing this many warnings, it should set alarm bells ringing across Whitehall,' Lammy stated. 'Taxpayers deserve to know their money is being properly managed.'
The NAO's interventions come at a critical time for public finances, with departments facing increased pressure from inflation, rising demand for services, and ongoing economic uncertainty.
