Select committee: Housing, Communities and Local Government Committee
Conclusion 1
First Report - Financial Reporting and Audit in Local Authorities
Published 24 Nov 2023
Paragraph 21
Addressed to Ministry of Housing, Communities and Local Government
Housing, Communities and Local Government Committee Financial Reporting and Audit in Local Authorities All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
The publication of local authority accounts and local authority audit have a vital role to play in supporting local democracy and accountability. However, their capability to fulfil this vital role is limited because stakeholders who might want to use the information in the accounts encounter significant challenges in finding and understanding the information they need. As a result, many stakeholders do not use the accounts at all. Local authority accounts and audit are therefore not adequately fulfilling their role in supporting local democracy and accountability.
From: Housing, Communities and Local Government Committee, First Report - Financial Reporting and Audit in Local Authorities (HC 59), paragraph 21, 24 November 2023
Government response
The government responded to the whole report on 5 February 2024 (deadline 24 January 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the Committee's report and gives a differentiated response across its 14 recommendations, agreeing with or committing to consider several while stating that clearing the audit backlog is its immediate priority and that it does not support one.
- On backlog, the government says its proposals include an initial backstop date of 30 September 2024 for all outstanding local audits up to and including 2022-23, "subject to consultation in early February".
- On a new local audit body (Recommendation 6), the government's view is that "a new arm’s length body is not necessary" and a system leader should instead be appointed from within the current system.
- On value for money (Recommendation 12), the government states "We do not support this recommendation", saying auditors are "not currently equipped" to comment on specific services, projects or programmes.
- On a standardised statement of service information and costs (Recommendation 10), it remains "committed to the prospect" but says introducing it now would add a requirement while clearing the backlog is the priority.