Summary
This briefing provides information on the expected impact on audit fees of changes in local audit requirements for 2024/25 audits. We are making this information available to support local discussions between opted-in bodies and auditors about fee variations for 2024/25 audits. Information is also provided on the potential impact for 2025/26 and future years.
We are publishing this briefing alongside our consultation on the 2025/26 fees. The final 2025/26 fee scale will be published on our website.
Some 2024/25 audits will have had a disclaimed or modified opinion in 2023/24 because of the introduction of the ‘backstop’ legislation. In these cases, the total 2024/25 audit fee may include audits costs from auditors undertaking ‘build-back’ work in accordance with guidance issued by the NAO Local Audit Reset and Recovery Implementation Guidance (LARRIG) 06. These costs and any corresponding adjustment to the published scale fee will be dealt with using the fee variation process.
On 24 June 2025 MHCLG published its arrangements for distributing the £49m funding package that it was making available to fund the process of clearing the backlog and rebuilding assurance (the ‘build-back’ process). The Government recognises that bodies will be incurring additional costs and are making funding available under the New Burdens Doctrine. The details of this funding arrangement was provided in a technical note for local bodies with disclaimed opinions published on 10 July 2025.