First Special Report - Financial Reporting and Audit in Local Authorities: Government Response to the Committee’s First Report

This is the government's response, published 5 February 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.

Read the government's response ↗ Report an error