14
Rejected
MHCLG plans to simplify local authority financial reporting to resolve audit issues
Conclusion
The Treasury and MHCLG also described other measures that they think will resolve the local authority audit issues. Beyond the backstop and additional funding, MHCLG said it is working to simplify the financial reporting requirements for local authorities, as the current level of complexity is, in MHCLG’s view, a barrier to the local authority audit market working effectively. It expects simplified audit requirements to stimulate additional supply of auditors.29
Government Response Summary
The government rejects the committee's perceived conclusion that it has taken too long to put plans in place for resolving local authority audit issues. It details its decisive actions, including announcing statutory backstop dates and launching a strategy to overhaul local audit.
Government Response
Rejected
Government Response
Rejected
HM Government
Rejected
The government does not agree with the Committee’s conclusion that it has taken too long to put these plans in place. Following the election, which led to a change in approach, the government took decisive action. In July 2024, it announced six statutory backstop dates, two of which have already passed, to clear the local audit backlog and allow the system to recover. In December 2024, it launched a strategy to overhaul local audit, and in April 2025, it announced 16 further commitments to streamline and fix the fragmented system.
Source
Committee
Public Accounts Committee
Report
16th Report - Whole of Government Accounts 2022-23
19 Mar 2025
HC 367
Addressee Bodies
HM Treasury
Timeline
Recommendation age
1.4 yr
Report published
19 Mar 2025