House of Commons · Written Ministerial Statement
Local Audit Build-back Progress
02 December 2025 · Ministry of Housing, Communities and Local Government
Proposed by Alison McGovern Lab Birkenhead
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The Government is working with local bodies and audit firms to address delays in recovering from disclaimed opinions in the local audit system.
- Additional training and support events are planned for the following year to assist local bodies and audit firms.
- New secondary legislation has been enacted to modify the local audit regime thresholds.
Issue summary
The statement discusses progress on rebuilding assurance within the local audit system in England, addressing delays in recovering from disclaimed opinions.
Action requested
The Government is working with local bodies and audit firms to accelerate progress, requesting them to prioritize resources and provide information on systemic issues. Additional training and support events are planned for next year, and new secondary legislation has been enacted to raise local audit regime thresholds. The English Devolution and Community Empowerment Bill will establish the Local Audit Office by autumn 2026.
Key facts
- Last July, the Government made clear that disclaimed audit opinions would be part of clearing the backlog.
- As of October 31, 2025, 99% of local bodies had received and published audit opinions for all years up to 2022/23, and 94% for 2023/24.
- By January 16, 2025, just under 95% of bodies had published unaudited accounts ahead of the second backstop deadline.
- A five-year programme was announced to rebuild assurance in local audit.
- Audit firms have agreed to extend their contracts until the end of 2029/30.
- New secondary legislation has raised local audit regime thresholds.
- The Local Audit Office will take responsibility for statutory functions from day one and full duties by April 2027.