14
Rejected
In November 2025, MHCLG published its Transition Plan for moving to a new system of...
Conclusion
In November 2025, MHCLG published its Transition Plan for moving to a new system of oversight for local audit. The English Devolution and Community Empowerment Bill, laid in Parliament on 10 July 2025, includes the proposed legislation needed to implement this strategy. The establishment of a new single body, the Local Audit Office (LAO), is central to progress. The LAO is intended to streamline and simplify the system. It will assume the functions of appointing and contracting auditors for local authorities and it will 20 MHCLG, Local audit reform: a strategy for overhauling the local audit system in England, December 2024 21 Q 11 22 Q 14 23 Q 24 24 Q 14 12 adopt ownership of the Code of Audit Practice and have powers to interpret and apply ISA requirements for the local audit context. Once established, the LAO will also take on oversight from MHCLG of the remainder of the backstop programme.25
Government Response Summary
The government disagrees with the Committee's conclusion regarding local audit, reaffirming its existing transition plan and ambition to clear backstop-related disclaimed opinions by 2027-28 through reforms including the Local Audit Office.
Government Response
Rejected
Government Response
Rejected
HM Government
Rejected
1.2 HM Treasury acknowledges the Committee’s interest in whether the government’s focus and composition is sufficient and aligned with the level of complexity involved in improving the WGA. To address the weaknesses referenced in the recommendation, wider reforms in the local audit sector such as the introduction of statutory audit backstop dates and the legislation on audit reforms including the establishment of the Local Audit Office are expected to increase completeness and therefore improve overall compliance. 3.3 The government does not agree with the Committee’s conclusion in relation to local audit. The government has a clear ambition to clear all backstop-related disclaimed opinions by the end of 2027-28 and has published a transition plan setting out the arrangements for the reformed local audit system to help meet this objective.
Source
Committee
Public Accounts Committee
Report
69th Report - Whole of Government Accounts 2023-24
04 Mar 2026
HC 1243
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.4 yrs
Report published
04 Mar 2026