The Committee will soon be looking at the Government balance sheet. The inquiry will focus upon the National Audit Office (NAO) report into the 'Whole of Government Accounts 14–15' and will specifically look to cover:
- The significant holdings of government assets.
- The long term historical liabilities and how they are being managed.
- The working capital required to operate government.
- The risks to the public finances that are illustrated by the support that the government grants to facilitate policy implementation, exposures that arise through government activities
- The infrastructure that government stands behind in the public interest.
The 'whole of government accounts' have been published since 2010 and, despite some continuing difficulties in delivering a consistently produced set of accounts that illustrate the full public sector, provides a perspective on the public finances that cannot be found from other sources.
One element of the value the balance sheet delivers over and above other sources is the ability to compare and contrast the portfolio of assets and liabilities that the government holds and manages on behalf of Parliament and taxpayers. These items contain significant elements of value and risk, for example the government’s infrastructure alone is worth around £1 trillion, but are not given as much attention as the tax and spend that forms the majority policy announcements and annual fiscal events.
The ability to analyse the performance of portfolios of assets and liabilities is increasingly important as the government consolidates the management of significant portions of the estate through, for example, the Government Property Unit, UK Government Investments, the consolidation of Local Government Pensions and unfunded pension data management through MYCSP, and the management of clinical negligence liabilities.
