Select committee: Public Accounts Committee
Conclusion 14
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 November 2025, MHCLG published its Transition Plan for moving to a new system of oversight for local audit. The English Devolution and Community Empowerment Bill, laid in Parliament on 10 July 2025, includes the proposed legislation needed to implement this strategy. The establishment of a new single body, the Local Audit Office (LAO), is central to progress. The LAO is intended to streamline and simplify the system. It will assume the functions of appointing and contracting auditors for local authorities and it will 20 MHCLG, Local audit reform: a strategy for overhauling the local audit system in England, December 2024 21 Q 11 22 Q 14 23 Q 24 24 Q 14 12 adopt ownership of the Code of Audit Practice and have powers to interpret and apply ISA requirements for the local audit context. Once established, the LAO will also take on oversight from MHCLG of the remainder of the backstop programme.25
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).