In December 2024, the Government published its strategy for overhauling the local audit system in England. It identified three systemic challenges in the existing system: capacity (a severe lack of auditors operating in the sector), co-ordination (fragmented roles with no clear ownership) and complexity (financial reporting and audit requirements disproportionately complex for local authority arrangements).20 MHCLG observed that the underlying issue stems from the fragmented distribution of responsibilities. It explained that regulatory and system leadership sits with the FRC; the Code of Practice is owned by the NAO; procurement oversight lies with PSAA; and audit quality and enforcement functions are again located within the FRC.21