W e are at a once-in-a-century crossroads in redefining the form, function and finances of local government. However, delays in local audits are serving to undermine public confidence in local government finances and are a hindrance to understanding the national balance sheet.

Fixing the manifold problems impacting on the financial sustainability of councils will require a cross-government approach to local government finance reform, one which must deliver effective accountability and value for money for taxpayers.