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Local Audit Framework Reform

Local Audit Framework Reform addresses modernization of the audit and accountability system for English local authorities, led by the Department for Levelling Up, Housing and Communities. The reform programme includes establishing a new Local Audit Office (LAO) as a single oversight body and updating the Local Audit and Accountability Act 2014 to enable modern data analytics and fraud detection. Current status is active with the English Devolution and Community Empowerment Bill laid in Parliament in July 2025, targeting elimination of qualified or disclaimed local authority accounts by 2027–28.

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23 Jun 2023 | Memorandum linked

The FRC said that from its point of view ‘ARGA cannot come in quickly enough.’ In March 2023 it agreed a memorandum of understanding with the Department setting out the ‘shadow’ system leadership responsibilities it will take on in the meantime. The FRC told us it saw this as a convening role, ‘co-ordinating what has been and still is to an extent a fragmented system.’71 It described its initial priorities as understanding the granularity of issues causing audit delays, addressing the backlog...

The FRC said that from its point of view ‘ARGA cannot come in quickly enough.’ In March 2023 it agreed a memorandum of understanding with the Department setting out the ‘shadow’ system leadership responsibilities it will take on in the …

▤ View document · ↗ GOV.UK
25 Jan 2023 | Research Ministry of Housing, Communities and Local Government linked

Progress update: Timeliness of local auditor reporting on local government in England

This report examines the progress made in improving the timeliness of auditor reporting on English local public bodies’ financial statements. Delays in completing audited accounts can have significant implications for local accountability and the effective management of public money. Report …

▤ View document · ↗ GOV.UK