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Update on measures to clear the local audit backlog in England
07 July 2025
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
At a Glance
Issue Summary
The statement updates on measures taken to clear the backlog of unaudited local authority accounts in England and outlines the government's plan for systemic reform of the local audit system.
Action Requested
The government has published a list of bodies that failed to meet publication requirements at the backstop deadline, engaged with non-compliant entities, and set a new deadline for 27 February 2026. The strategy includes establishing a Local Audit Office (LAO) to oversee local audit and ensure efficiency, transparency, and value for money.
Key Facts
- The government has committed £49 million in grants to support bodies with building back assurance in 2024/25 and 2025/26.
- Over 92% of bodies published their audited accounts by the 28 February 2025 deadline, with nearly half disclaiming opinions due to the backstop.
- The next backstop for publication of audited accounts is set for 27 February 2026 for financial year 2024/25.
- A new Local Audit Office (LAO) will be established to oversee local audit and streamline the system.
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