The UK’s public finances are ‘even worse’ than the Chancellor’s assessment in last year’s budget, as figures from the Whole of Government Accounts are released, according to a senior figure within the ICAEW reports Accountancy Daily.
Responding to the publication of the Whole of Government Accounts (WGA), Henning Diederichs, ICAEW public sector financial reporting manager said the accounting loss was twice the fiscal deficit.
‘The WGA provide a sobering picture of the public finances, which need much more attention than it is likely to get. With total liabilities of 214% of GDP and net liabilities of 120%, the financial position of the UK public sector is even worse than presented in the Budget. The accounting loss for the year was £98bn, more than twice the fiscal deficit of £45bn’
The WGA consolidates the audited accounts of over 7,000 organisations across the UK public sector and is based on International Financial Reporting Standards, the system of accounts used internationally by the private sector.
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Report by Rob Munro