03-02-2025
In response to the Ministry of Housing Communities and Local Government’s (MHCLG) ‘Local audit reform: a strategy for overhauling the local audit system in England’ consultation, CIPFA Director of Public Financial Management Iain Murray, said:
“CIPFA fully supports the aim of this consultation to address the long-standing challenges in local audit, including the troubling backlog of audits that has hindered timely financial reporting. The establishment of the Local Audit Office is a positive step, but it’s vital that its remit is focused to avoid unnecessary duplication.
“We also strongly advocate for the reform of local authority accounts. It’s crucial that we do not let the pace of reform stall while we wait for a new body to take shape. CIPFA is committed to ensuring that the financial reporting framework for local government is fit for the future, and we look forward to working with the government and other partners to make this a reality.”
CIPFA’s Head of Standards and Technical David Lyford-Tilley, said:
“The consultation on local audit reform presents a critical opportunity for meaningful change in the local government audit system. CIPFA welcomes the proposed creation of the Local Audit Office (LAO), which we believe will provide the much-needed focus and leadership to restore confidence in local audit. However, it’s essential that we ensure the role of the LAO is not overextended, particularly in areas where existing structures are functioning well.
“We must strike a careful balance between reform and maintaining the integrity of current practices. The sector urgently needs improvements in financial reporting, and CIPFA stands ready to work with all stakeholders to drive forward these reforms.”
In support of auditors, CIPFA has relaunched the Better Reporting Group (BRG) with a focus on enhancing user experiences with accounts. The aim of CIPFA’s BRG is to recommend practical measures that improve the value of local authority accounts to users.
Notes to editor
- Download CIPFA's response to MHCLG consultation on local audit reform
- Find out more about CIPFA’s Better Reporting Group (BRG).
- For further inquiries, please contact the CIPFA Press Office press@cipfa.org.