Recommendation 13

We challenged MHCLG on progress in addressing the local audit backlog.22 MHCLG explained that the statutory backstop is operating as intended and that rising audit fees are bringing more money into the system – fees are up 150% on the last procurement that the public sector audit authority has done.23 It noted that accounts have already been simplified for 2025–26, with further simplifications planned by CIPFA for 2026–27. MHCLG also highlighted that forthcoming legislation would remove the requirement for accounts to be signed off by a key audit partner—a role held by only around 100 people nationwide—which it argued has contributed to the backlog, and said that removing this requirement should help reduce delays.24