UK public sector fiscal reporting: clear and contradictory

Abstract

This paper explores the United Kingdom’s (UK) attempt to reconcile fiscal reporting logics through its Clear Line of Sight Alignment Project (CLOS). Drawing on archival data, together with semi-structured interviews with representatives involved in the implementation of CLOS, the findings indicate that what started as a means of resolving the tensions between logics, CLOS has exacerbated some existing ones and exposed others. This is largely due to the influence of the professional logic, primarily the UK’s adherence to International Financial Reporting Standards which prevents fiscal reporting being fully aligned. Furthermore, our research illustrates how the UK government has resisted elements of both the professional and national logics to create a system designed to rationalise the fiscal reporting maze. The findings also show that operationally CLOS has (to an extent) aligned the timing, coverage and classification of the fiscal reporting process to present the flow of expenditure from budgeted to approved, to outturn, thereby contributing to the wider agenda of improving the planning, management and control of public expenditure. Given continued calls to align global fiscal reporting practices, this paper informs public policy makers of the (potential) linkages between systems, the obstacles that can be encountered and the incentives for adopting it.