UK public sector overhauls financial rules and climate governance for 2024-25

New financial and governance rules have been introduced across the UK public sector. Several updates will affect how departments, health bodies, and arm’s length organisations handle accounts, audits, and sustainability planning. The changes include revised standards, updated manuals, and fresh guidance on contracts and climate considerations. The Department of Health (DoH) has issued external financial guidance to Health and Social Care (HSC) bodies and Arm’s Length Bodies (ALBs). This comes alongside the release of the DoH ALB Manual of Accounts for 2024-25. A timetable for submitting ALB accounts has also been published, setting clear deadlines for the year.

The Government Actuary’s Department (GAD) has provided updated factors for the 2024-25 annual accounts. Meanwhile, the Government Financial Reporting Manual (FReM) for the same period is now available. Final indices for 2024-25 have also been amended and republished after review.

New Global Internal Audit Standards have been introduced for the UK public sector. These aim to strengthen oversight and accountability in financial reporting. Additionally, a Corporate Governance Code of Good Practice for Central Government Departments in Northern Ireland has been published, effective from 2025.

Further guidance has been released on Direct Award Contracts for HSC organisations. Another key update covers how to incorporate environmental and climate considerations into business cases, reflecting growing emphasis on sustainability in public sector decision-making. The updates provide clearer rules for financial reporting, auditing, and governance in the public sector. Organisations will need to adjust to the new standards, manuals, and deadlines before the 2024-25 cycle begins. The changes also push for greater transparency in contracts and climate planning.