Ellie Ames 06 November 2023

Chancellor urged to tackle audit backlog

Chancellor urged to tackle audit backlog image
Image: William Barton / Shutterstock.com

The Institute of Chartered Accountants in England and Wales (ICAEW) has called on the Government to ‘tackle the crisis’ in local authority financial reporting and audit.

Following the ICAEW's representation to the Treasury ahead of the Autumn Statement, the organisation's chief executive, Michael Izza, has written to chancellor Jeremy Hunt.

Mr Izza said the Government must increase the resilience and sustainability of public finances and a 'key component' of this would involve addressing problems in local government finance.

He said: ‘The structural failures in the local audit system, with nearly a thousand delayed audits, may have serious financial consequences for communities across England.

‘We hope the chancellor will use the Autumn Statement as an opportunity to increase the resilience and sustainability of the public finances, with a cross-government effort to clear the mountain of delayed audit opinions to get the system back on track.’

The institute also urged the Government to replace competitive bidding for short-term funds with long-term funding streams for councils.

The ICAEW said: ‘The current system sees councils spend time and money submitting bids for relatively small sums, and further resources are then used in Whitehall assessing the bids.

‘ICAEW argues that this inefficiency diverts councils and central government from delivering for local communities.’

Mr Izza told the chancellor: 'Without attention to how local government is funded, tangible and sustainable reductions in regional inequality are not possible.'

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner