Increasing financial pressures and people’s dissatisfaction with public services means now is the time for a shake-up of audit for central and local government, the authors of a report for the Smith Institute said.

Tax is likely to increase in the future as a result of demographic pressure on areas such as health and social care, and these can only be justified if the public is “confident” its money is being well spent, authors John Tizard and David Walker told the report launch yesterday.

“Fiscal pressure is likely to rise in the short run, depending on the nature of Brexit. It will certainly grow in the long run, as public spending accommodates demographic change: an older population will demand more health and social care and other services,” Spending fairly, spending well said.

It called for the creation of two new government bodies and more responsibilities given to the National Audit Office to improve public audit.

The NAO would take over audit responsibilities for the NHS and local government, the report suggested.

Authors audit commentator Tizard and David Walker, former head of communications at the Audit Commission, urged for the creation of a Public Interest Appraisal Unit, which would evaluate value for money before spending decisions are made. The NAO assesses government spending decisions after they have been made.