William Eichler 09 April 2025

McMahon announces new audit reforms

McMahon announces new audit reforms  image
© Volha_R / Shutterstock.com.

The Government has set out a series of 16 commitments aimed at fixing the ‘fragmented and broken’ local audit system.

The reforms include measures such as simplifying financial reporting requirements and increasing capacity to avoid reliance on a small number of auditors.

Minister of State for Local Government and English Devolution, Jim McMahon, said the current audit system was ‘not fit for purpose, inefficient, fragmented and with a massive backlog.’

The reforms will be backed up by a £49m cash boost aimed at helping councils clear the audit backlog and restore audit assurance.

However, the minister emphasised the funding will be dependent on compliance with statutory backstops and linked to the publication of audited accounts and audit fees being paid.

‘A functioning local audit system is the bedrock of local transparency and accountability, so we are fixing the foundations of local government as part of our Plan for Change,’ said the minister.

‘We are working in lock-step with local bodies to clear the backlog and move towards a simplified streamlined system.’

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