Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government what progress has been made in increasing local audit market supply since his department published its paper on 'Local audit reform: A strategy for overhauling the local audit system in England' in December 2024.

Since publication of the local audit strategy, Public Sector Audit Appointments has secured two-year contract extensions with firms. This has helped to stabilise local audit market supply while the Government implements wider reforms to strengthen market resilience over the longer term.

The English Devolution and Community Empowerment Act will establish the Local Audit Office to oversee the local audit system from autumn this year. The Local Audit Office’s statutory objectives include securing a suitable supply of local audit services, placing market capacity and sustainability at the heart of its responsibilities.

The Government will also work with the Local Audit Office on further measures to support market capacity, including developing public provision and simplifying local authority financial reporting.