Local government spending watchdog the Audit Commission has hit out at “misleading press reports” that accompanied the announcement of its abolition on Friday.

In a letter to communities secretary Eric Pickles, the quango’s chairman Michael O’Higgins said he had been “disappointed and dismayed” by reports that it had spent taxpayers’ money on activities such as “days at the races”.

O’Higgins also said the Commission, which assesses local authorities on disciplines such as asset management, was keen to explore the idea of a John Lewis-style employee buy-out.

He wrote: “I believe that the Commission has more than fulfilled Lord Heseltine’s ambitions for it when he set it up in 1983. While we obviously regret your decision, we can reflect upon the very significant successes that the Commission has had.

“However, we have been disappointed and dismayed at the misleading press reports in response to your announcement. I am sure that you share our concerns at these factual inaccuracies, and would not wish them to be repeated.

“The Commission made payments to Newmarket racecourse for meeting and conference facilities. These were briefings for local government and NHS bodies on technical issues that might arise from the current programme of audits. The dates were not race days.”

Also today, the Chartered Institute of Housing has said it needs urgent clarity on how local authorities’ housing services are monitored in future.

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