We are very supportive of the overhaul of the local audit system. The government set out its approach to local audit in its Strategy for Local Audit Reform in December 2024 and provided further details in the outcome to its consultation published in April 2025. The reforms set out a clear purpose for local audit and its users, including proposals for simplified and proportionate financial reporting, improvements to the market’s capacity and capability, and ways to build strong relationships between local bodies and auditors. The overhaul includes establishing a new arms-length body, the Local Audit Office (LAO), which will combine functions from across the system and oversee local audit.
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