The Government has closed the local government watchdog barely a year after it was founded, citing cost concerns and a “vague” remit.
In a letter published on Monday, local government minister Jim McMahon said he had decided to close the Office for Local Government (Oflog), less than 18 months after it was launched.
Oflog was formally opened by then-communities secretary Michael Gove in July 2023 following a string of council bankruptcies, and given a remit to monitor the performance of local authorities and warn when they were at risk of serious failure.
But the body was heavily criticised by councils over its use of data and its unclear role, with some suggesting it was duplicating work already done by other bodies.
It is clear to me that Oflog was hampered with a vague and broad remit that risked duplication of functions performed elsewhere
After coming to power, Labour announced its intention to review Oflog’s role by the end of the year.
In his letter to Oflog chief executive Josh Goodman, Mr McMahon said the “fiscal context” meant resources had to be focused “on the front line”, suggesting cost had been a factor in his decision.
He added: “It is also an urgent priority to fix the local audit system, which was not part of Oflog’s remit.
“Furthermore, it is clear to me that Oflog was hampered with a vague and broad remit that risked duplication of functions performed elsewhere.
“For those reasons, I have taken the decision to close Oflog.”
He went on to say that the Government would work with councils to “establish other ways to ensure that local authorities are fit, legal and decent”, and “learn the right lessons from Oflog” to ensure its work was not “wasted simply because its formation was underdeveloped and lacked political clarity”.
In its devolution white paper published on Monday, the Government committed to reforming the audit system for local councils, many of which are set to publish their accounts this year without auditors’ approval.
The Government also announced it would introduce new powers to improve standards at local councils, including the power to suspend misbehaving councillors for up to six months.
