Audit Commission - Criticism and Controversy

Criticism and Controversy

• The Commission has been criticised for its methods, particularly how it rates councils and health organisations. Liberal Democrat MP Vince Cable described the process organisations go through to earn stars as "disrespectful and utterly perverse".

• Management consultant John Seddon called for the Commission to be scrapped, which led to what The Times described as a "caustic personal attack" on Seddon from the Commission.

• In 2009, the Commission caused controversy when it published a report into the 2008–2011 Icelandic financial crisis which accused seven local authorities of acting negligently by depositing £33 million into Icelandic banks a few days before they collapsed in October 2008. The Audit Commission had already stated that it too had deposited £10 million in Icelandic banks in the months leading up to the collapse.

• In 2010, Eric Pickles and Bob Neill accused the Commission of "shocking excess" in its expenditure, such as hiring external venues for staff training. Michael O'Higgins, the Commission's chairman, defended the expenditure on BBC Radio 4's Today programme.

• One of the features of the criticism of the Audit Commission has been an apparent campaign carried out in the press. On 3 November, newspapers carried articles about alleged extravagant spending by the Audit Commission, after its abolition was announced.