Access several national studies published by the Audit Commission, which examine a variety of issues related to financial management and improvement.

• Local Government Pensions in England
• Under pressure - tackling the financial challenge for councils of an ageing population
• Summing Up
• Risk and Return
• Back to Front
• Delivering Efficiently: strengthening the links in public service delivery chains
• Efficiency challenge: The administration costs of revenues and benefits
• Governing Partnerships: Bridging the Accountability Gap
• World class financial management
• Improvement through better financial management

Local Government Pensions in England

The Local Government Pension Scheme is the UK’s largest public sector pension scheme by membership. The Audit Commission's latest information paper examines its long-term affordability. It finds that although it is backed by local funds, recent investments have failed to deliver the anticipated returns, and the funds currently cover only about three-quarters of the scheme’s future liabilities.

The paper, published on 28 July 2010, is intended to inform Lord Hutton's inquiry into public sector pensions. It suggest some actions that could be taken to put the Local Government Pension Scheme on a better financial footing, such as:

• Employee contributions could be raised, but tapered to discourage members on lower salaries from opting out.
• Savings could be made by raising the normal retirement age and reducing the rate at which pension benefits are earned.
• Local pension funds could be allowed more discretion to adjust the level of benefits offered to pension fund members.
• Local government employers should keep liabilities in check by controlling wage costs.

Access the full report: 'Local Government Pensions in England' (PDF file, 44 pages, 1 MB).

Download the technical appendices, which summarise the more detailed analysis relating to the scheme. 'Technical Appendices' (PDF file, 48 pages, 591 KB).

Under pressure - tackling the financial challenge for councils of an ageing population

On 18 February 2010, the Audit Commission published a report: 'Under pressure - tackling the financial challenge for councils of an ageing population' (PDF file, 68 pages, 2.6 MB). The report has five main chapters:

• More older people, less money - sets out the nature of the challenge in the current economic, policy and demographic context
• Taking a strategic role - recognises the importance of local place, and describes how councils need to take a strategic approach across departments
• Managing costs - the importance of medium-term financial planning, understanding costs in an area, and the particular challenge of social care costs
• Prevention and early intervention - how to reduce demand while supporting health and wellbeing, the importance of understanding a changing market, and the importance of collaboration locally
• Using information - what councils know already, how they can use information better, and how to use cost information

Each of the last four chapters has a series of 'challenge and review questions', which can help councils, and their partners, to assess how well they are responding to the challenge locally. The questions are divided into three themes covering: strategy, finance and data. Also access a number of other findings and recommendations documents. 

Summing Up

This study, published in April 2009, provides an overview of councils' progress in developing their financial management arrangements between 2005 and 2008, and discusses the importance of sound financial management in helping to meet the challenges facing local government in the short to medium term. Access: 'Summing Up - A review of financial management in local government 2005-2008'.

There is an additional 'Local Government Ratios Tool' available, which is being used by 150 county and single tier councils, and was expanded to include district councils on 11 February 2010.

Risk and Return

This Audit Commission report, published in April 2009, 'is the first in-depth examination of English local authorities’ deposits in the Icelandic banks. The research found that the majority of councils acted properly in managing their investments and were alert to the risks. However, the report also identifies some examples of poor practice during the days leading up to the collapse of the Icelandic banks on 7 October 2008. Access: 'Risk an Return'

Back to Front

This report, published in October 2008, focuses on savings in operations such as finance, human resources, IT, procurement, legal services, facilities management, marketing and communications, which have contributed £1.2 billion to the £4.3 billion efficiency savings made by English councils over the last three years. Access the full report: 'Back to Front: Efficiency of back office functions in local government' and its additional support tools.

Delivering Efficiently: strengthening the links in public service delivery chains

This report, published in March 2006, is intended to help government departments and their delivery partners at regional and local levels to address risks. It is also designed to assist all those involved in delivering challenging public sector targets to improve the effectiveness and efficiency of existing delivery chains and to make decisions on future delivery chains in the knowledge of what works best. Access: 'Delivering Efficiently - strengthening the links in public service delivery chains'.

Efficiency challenge: The administration costs of revenues and benefits

Research for this report, published in November 2005, was undertaken because of costly administration of revenues and benefits, with English councils spending £1 billion each year on collecting council tax, business rates and processing housing and council tax benefit claims. It is published in two part, also covering the costs of administering local government pension funds in London. Access: 'Efficiency challenge - the administration costs of revenues and benefits'.

Governing Partnerships: Bridging the Accountability Gap

This report, published in October 2005, urges local public bodies to take a much harder look at whether the partnerships they are involved in are delivering. Access this national report: Access: 'Governing Partnerships - Bridging the Accountability Gap'.

World class financial management

This discussion paper, published in November 2005, is designed to stimulate debate across public services and among finance professionals, about what standards of financial management the public sector should aspire to over the longer term. It is a high level in nature and is not intended to be a practical guide to how financial management in the public sector might be improved. Access: 'World class financial management'.

Improvement through better financial management

This report, published in October 2004, is aimed at portfolio holders, scrutiny chairs, chief executives, corporate directors, heads of service, finance directors, other finance officers and service managers. It identifies how several local authorities have achieved excellence in financial management, and how this was achieved. Access: Improvement through better financial management (PDF, 156 KB, 28 pages).

Access more information about the Audit Commission's National Studies programme.