Kevin Reed, Accountancy Age, Monday 17 May 2010 at 08:29:00

Government spending faces top-to-bottomaudit prior to finalising new Budgetdetails


Government spending faces an audit after the new coalition warned that Labourhad led a "scorched earth" policy on spending in its last year in power.

The Office for Budget Responsibility, headed by Sir Alan Budd, will launch anaudit of government spending to understand the full extent of the public sectorspending deficit.

The National AuditOffice is usually responsible for auditing central governmentdepartments.

Ministers criticised pushing through of spending prior to the end of theprevious government, including a 13bn oil tanker project and 420m of schoolbuilding contracts.

Business secretary Vince Cable warned of finding "skeletons" in cupboards.

"I fear that a lot of bad news about the public finances has been hidden andstored up for the new government," said Cable inTheTimes.

Further reading:

AATV:Top tax advisers discuss Con-Lib plans

StephenTimms stabbed

Accountantsstorm the Treasury