To ask the Secretary of State for Housing, Communities and Local Government, what assessment she has made of the effectiveness of audit requirements for town and parish councils following the abolition of the Audit Commission in 2015.
Answered on
29 April 2025
In December 2024, the government launched a strategy to overhaul the local audit system in England. Through the strategy and subsequent consultation response, the government has committed to a number of measures in relation to smaller bodies including to review the effectiveness of the Annual Governance and Accountability Return process for smaller bodies. The government will introduce legislation to move away from audit regimes based solely on thresholds to ensure a risk based and proportionate approach. As part of the wider reforms, the government is establishing the Local Audit Office (LAO) to streamline and oversee the currently fragmented system. In the longer term, the LAO’s appointment and contract management function will expand to include the smaller authorities’ appointment and assurance framework to minimise fragmentation in the system.