Ahead of the Budget, departments across government will be preparing to respond to shifting priorities and new objectives. Strong financial management is critical, not just for reprioritising and reallocating resources, but for driving efficiency, productivity, and ensuring value for money. In today’s complex public service landscape, accounting officers must make the best use of finite resources to meet responsibilities to taxpayers, as set out in Managing Public Money – and sound financial management enables organisations to optimise public money and build resilience.
Financial management is not just the responsibility of finance leaders. Every civil servant – at every grade – has a part to play. For budget holders, this means making informed choices that align resources with organisational priorities. Done well, it empowers teams to unlock opportunities, deliver better outcomes, make timely, well-informed decisions, and adapt quickly to change.
Ultimately, good financial management creates clarity for decision-makers, fosters collaboration between finance and the wider business, and builds trust – so that every pound delivers maximum public value.
NAO’s ‘Good Practice’ series
Given the importance of financial management in government, the NAO has worked over the past two and a half years with finance leaders across government and beyond to explore how we strengthen financial management. The result is the NAO’s first-ever five-part Good Practice Guide series.
As the director overseeing this work, my role was to shape and guide the campaign from concept to delivery. This meant drawing on my ‘Big Four’ assurance and advisory experience to explore the art of the possible and create a novel, multi-year modular series offering practical, strategic insights for finance leaders.
To give the series structure, we developed and anchored the guides around a financial management lifecycle (as shown in the image below).
We tested this lifecycle rigorously with stakeholders across the three lines of defense in government and beyond, engaging expert panels which ensured each guide was grounded in real-world challenges.
Each guide includes a set of principles which set out what good looks like, and outlines key actions and practical tips. This work also aligns with our new five-year outcomes-focused strategy, which identifies “supporting better financial management and reporting in government” as one of its strategic priorities.
There is something for everyone here.
The data challenge: information, insight, and innovation
Reliable, forward-looking data is the lifeblood of good decision-making. Government organisations need real-time information, not just to track spend, but to anticipate risks and opportunities. In our Reporting for Decision-Making guide, we explore how departments are modernising reporting systems and embracing automation and AI to improve insight.
Take Network Rail, for example. Its Wales and Western region integrated datasets from five separate systems – covering risk, safety, finance, scheduling, and commercial – into a single platform. This user-friendly visualisation tool now provides real-time data to support decision-making across the organisation, freeing up time for more complex tasks and improving data quality at source.
But technology alone isn’t enough. Transformation depends on strong business processes, workforce capability, and clear accountability – underpinned by robust governance and effective leadership. Crucially, non-finance staff need to feel connected to financial information and confident in using it, so decisions are informed and aligned with organisational priorities.
As a chief finance officer at an arm’s-length body told us: “Data is the foundation for trust and transparency – without it, decisions are guesswork.”
Ultimately, real transformation is driven by leadership that champions transparency, invests in capability, and creates an environment where finance and the wider business work together towards shared goals.
The people challenge: leadership, culture, and capability
Financial management is not just about systems and data – it’s also about people. Two of our three enablers of success are people-focused: ‘leadership, governance and culture’, and ‘skills and capabilities’. Across the guides, we’ve seen how inclusive planning, clear accountability, and empowered finance teams unlock better outcomes.
For individuals, strong financial management brings real benefits: time and tools to fulfil responsibilities effectively, faster and clearer insights from the information they produce, and an environment of trust where innovation is encouraged. These benefits matter because they enable better decisions, greater influence, and stronger contributions to organisational success.
Culture is critical. Leaders set the tone, but success depends on behaviours at all levels – creating a workplace where challenge is welcomed and collaboration is routine, and realism (especially in forecasting) is valued over reassurance.
As one senior finance leader put it: “Forecasting should be honest, not optimistic. Leaders need to create an environment where realism is valued over reassurance.”
Trust between finance and the wider business is equally vital. Planning isn’t just about numbers; it’s about conversations that create early ownership and inform better decisions.
Fundamentally, leadership and capability are the levers that turn good intentions into better decisions. When finance and non-finance teams work together, supported by strong governance and a culture of openness, organisations can move beyond compliance to create real value.
Why allocating resources matters now
Our Allocating Resources guide is particularly relevant in the current context. Budget announcements often bring new priorities and shifting objectives. Departments must reprioritise quickly and redirect resources to where they will have the greatest impact. This isn’t just about cutting costs; it’s about making informed trade-offs that balance short-term pressures with long-term value. Departments can respond to changing plans by being agile and reprioritising, based on new information – an essential capability in the wake of any budget announcement.
As a finance director in central government told us: “Reprioritisation is not failure – it’s a sign of responsiveness. The ability to pivot based on new information is what keeps organisations resilient.”
Engaging with audit and risk assurance committees: what leaders should know
ARACs support governance by providing independent advice and challenge on risk management, financial reporting, and assurance arrangements – helping strengthen transparency and accountability.
When engaging with ARACs, leaders should anticipate challenge on forecasts (are they realistic and achievable?), expect scrutiny of data quality and reporting integrity (is anything missing, reconciled, and reliable?) and, after the budget, be ready to explain how resources are being reprioritised and trade-offs managed to deliver value for money.
Closing thoughts
Every pound counts… financial management is not just the responsibility of leaders – it’s a shared responsibility. By focusing on leadership, capability, and data – and embedding strong practices in planning, budgeting, resource allocation, and forecasting – government organisations can make better decisions, deliver greater value, and build trust with citizens.
Looking ahead and given our strategic priority to improve financial management and reporting across government, these guides will underpin future work to strengthen accountability, resilience, and value for money. Every civil servant has a role to play in getting the most out of every pound. Public trust depends on it.
Mfon Akpan is director of financial and risk management insights at the National Audit Office. You can find the whole financial management series here