Barely have pleasantries been exchanged before Sue Higgins launches into a passionate rebuttal of claims made by a former Audit Commission communications director.

Ms Higgins, who is the National Audit Office's (NAO) new executive leader for local government, is good-humoured about David Walker's recent attack on her organisation's extra responsibilities in The MJ, but firm in her defence.

Mr Walker described the Commission's death as a ‘real loss' and argued there was ‘hidden menace' in some of the NAO's statements as it widens its influence over local government.

But within moments of the piece being thrust in front of her by a press officer, Ms Higgins hits back: ‘Perhaps it's someone a bit jealous of an organisation that can look end to end. I think he's got it completely wrong. I think local government should be rejoicing that they've got the NAO doing this work.

‘We'll be looking right across the piece – unlike the Audit Commission. I think it's a great opportunity for the sector to have useful pieces of work done.'

Mr Walker is also glum that the NAO had chosen to hire a civil servant from DCLG but this also draws a strong response. 

In fact, Ms Higgins worked for Slough BC, Hounslow LBC and Sutton LBC before making the big move to Whitehall in 2009.

She is far from dismissive of her experience in central government: ‘I've been passionate for a long time about joining up public services but don't underestimate how difficult it is to change central government.

‘This new role is part of my journey and my mission to find lots of different ways to effect public service transformation.'

Ms Higgins views her new role as returning to her ‘roots' in local government and even goes as far as saying she is ‘biased' towards the sector.

She says: ‘I think local government does brilliantly. Local government never ceases to deliver and amaze. It's a wonderful sector and I am in awe of the officials – it's pretty hard and thankless work that they do.'

And Ms Higgins is in listening mode, with a number of panels due to be held this year to get as many perspectives as possible from representative groups.

She continues: ‘It is very much about trying to listen to what the issues are. I won't pretend for a moment that we know local government's business but I hope I can bring a degree of empathy.  I won't forget the experiences I've had.'

Of course, local government has changed a fair bit since Ms Higgins worked in the sector.

But her optimism is not dented by the results of The MJ's annual finance survey, in which more than a third of councils warned they might be unable to deliver essential services, and claims that the local government finance system is broken.

Ms Higgins said: ‘I think it will continue to rumble on as an issue. I don't think there will be an easy answer to it though I do feel quite proud about what my old department did around business rate retention, which I think has been the most fundamental change in the time I've been in and around local government.

‘Austerity is biting but I'm really optimistic about local government's future. Sadly, I predict there will be points of failure but it is really motivating in a bizarre sort of way to try to find a way through.

‘There were some really traumatic times in the 1980s but everything endures. There are pinch points and flash points and episodes but fundamentally those services are so important to the public.'

Like local government, its watchdogs are also being scaled back.  Before it started to be wound down the Commission employed several thousand people whereas the NAO has 860 people on its books to scrutinise all of public spending.

The Government claims the axing of the Audit Commission will save £1.2bn.  In 2013-14, the NAO will be given just £1.9m to produce six value for money reports – four on locally delivered services and two on foundation trusts – and for developing its future programme, and it does not expect its funding to increase by much in future years.

Ms Higgins says the NAO's focus will be where individual difficulties ‘start to become indicative', and has the likes of adult social care, public health and children's services in her sights.

She admits that four national studies will not be enough for everyone but adds: ‘It feels about right to me. I think it's better to do a small number of things that have real impact.

‘We're not replacing what was there before but we care about improving public services and getting best use out of the public pound.

‘Government departments have to respond to the NAO and we've got a great opportunity to be increasingly influential in public service delivery by shining a light on the things that need improving.'