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

To ask the Secretary of State for Housing, Communities and Local Government, what steps her Department is taking to improve future auditing arrangements for local authorities.

This government has implemented a number of measures to improve auditing arrangements for local bodies, including the introduction of statutory backstop dates for the publication of audited accounts. Two of these dates have now passed. As a result, the vast majority of local bodies have published audited accounts for financial years up to and including 2023/24.

Where disclaimed opinions are issued as a result of backstops, auditors’ statutory duties – including value for money reporting, making statutory recommendations, and issuing public interest reports – remain a high priority. The government recently announced £49 million in funding to support bodies impacted by the backstop measures.

In December 2024, the government set out its strategy to overhaul local audit. The strategy set out proposals to simplify and streamline the system including a clear purpose for local audit and its users, the establishment of the Local Audit Office, proposals for simplified and proportionate financial reporting, improvements to the system’s capacity and capability, and ways to build strong relationships between local bodies and auditors. The government also published a response to its consultation in April 2025, which outlined 16 further commitments to reform the system including simplifying financial reporting requirements and increasing capacity to avoid reliance on a small number of auditors.