Tory MPs are attacking the Bill during a second reading debate complaining that the measure gives unfettered discretion to the Treasury, establishes no clear principles for the accounting of income and expenditure and will allow mandarins to omit large public assets from the national balance sheet.

A clash over the Bill is also looming between Treasury ministers and members of the powerful all-party Commons Public Accounts Committee over their demand for the Comptroller and Auditor General and his National Audit Office to be able to follow public money wherever spent, including arms-length state-owned companies.

But the legislation will pass by a large majority and be sent for detailed examination to a Commons committee.

Government urged to decide how performance measurement in Whitehall will be audited

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