A report from the Audit Commission has highlighted the dangers of corporate governance failures in the public sector.

The government spending watchdog warned that such lapses could have "tragic consequences".

And trust in public services could be undermined by such failings, the commission warned.

The watchdog found that performance management is weak across the local public sector, while financial risk is highest in the NHS as trusts work to meet the targets in the NHS Plan.

The quality of information for decision making needs to improve in all areas, but particularly in the NHS and the police, said the report.