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

To ask the Secretary of State for Housing, Communities and Local Government, whether the Local Audit Office will have the authority to (a) undertake inspections of individual local authorities, (b) commission external research and (c) exercise best value powers.

As outlined in the Local Audit Strategy, the government has committed to establish the Local Audit Office (LAO) to streamline and simplify the system. The LAO will have responsibility for co-ordinating the local audit system, contract managing and appointments, the code of audit practice, quality and oversight, and reporting and insights (which could include undertaking or commissioning research related to local audit).

While the LAO will oversee the quality of the local audit regime, it will not be responsible for carrying out inspections of local authorities. The government is consulting on the need for public provision to supplement private market capacity and whether this function should be delivered by the LAO which could result in the LAO undertaking some audits of individual local authorities.

Best value powers (under the Local Government Act 1999) will remain with the Secretary of State and the department.