Select committee: Public Accounts Committee
Conclusion 12
69th Report - Whole of Government Accounts 2023-24
Published 4 Mar 2026
Addressed to HM Treasury
Public Accounts Committee Whole of Government Accounts 2023-24 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
In December 2024, the Government published its strategy for overhauling the local audit system in England. It identified three systemic challenges in the existing system: capacity (a severe lack of auditors operating in the sector), co-ordination (fragmented roles with no clear ownership) and complexity (financial reporting and audit requirements disproportionately complex for local authority arrangements).20 MHCLG observed that the underlying issue stems from the fragmented distribution of responsibilities. It explained that regulatory and system leadership sits with the FRC; the Code of Practice is owned by the NAO; procurement oversight lies with PSAA; and audit quality and enforcement functions are again located within the FRC.21
From: Public Accounts Committee, 69th Report - Whole of Government Accounts 2023-24 (HC 1243), 4 March 2026
Government response
The government responded to the whole report on 1 June 2026 (deadline 4 May 2026).