Audit fee scale (November 2025)
PSAA has published the 2025/26 audit fee scale following consultation.
The fee scale will apply for the audit work to be undertaken by appointed auditors in respect of the 2025/26 financial statements at relevant principal authorities that have opted into PSAA’s national auditor appointment arrangements for the period 2023/24 to 2027/28.
Auditors undertake their work under the requirements of the Code of Audit Practice and supporting guidance published by the National Audit Office on behalf of the Comptroller and Auditor General, the financial reporting requirements set out in the Code of Practice on Local Authority Accounting published by CIPFA/LASAAC, and the professional standards applicable to auditors’ work.
Auditors collect audit fees on behalf of PSAA, and fees must be paid by opted in bodies following our determination in line with our role as appointing person.
Under local audit regulations the 2025/26 fee scale must be published before 1 December 2025 and cannot be amended after that date. We will assess any subsequent changes in national requirements or local circumstances relating to the 2025/26 audits as fee variations.
2025/26 directory of auditors and scale fees for opted-in bodies.
Consultation on the 2025/26 audit fee scale
PSAA has published the fee scale for 2025/26 audits, following consultation with bodies and other stakeholders.
Our consultation took place during September-October 2025. It set out a proposed increase of approximately 4% comprising 2.8% to cover a contractual inflationary increase payable to audit firms for 2025/26 and a provisional 1.2% for additional audit work. This estimate was based on firms’ submissions received since the 2024/25 scale was set. Following completion of our review, the final increase for additional audit work has been determined as 0.28%. This is in addition to the 2.8% inflation, giving an overall average fee increase of 3.08%. If any additional audit work is required beyond what is covered by the scale fee, we will review the associated costs in line with our established fee variation process.
Consultation responses raise understandable concerns about fee increases given the financial pressures on opted-in bodies. We received 126 substantive responses (25% of consultees), of which 122 (97%) were from opted-in bodies and four (3%) from other stakeholders. Of those who expressed a view, 80% agree with the proposed fee scale and 20% do not.
We recognise the significant financial and wider pressures on opted-in bodies and understand that fee increases are an unwelcome additional budgetary pressure. We only propose uplifts where necessary to reflect recurring work or contractual obligations.
We welcome the feedback we received to our consultation and thank all those who took the time to respond. The PSAA Board has reflected carefully on the consultation outcome and takes very seriously the views expressed. It has confirmed the final 2025/26 fee scale as proposed in the consultation.
The fee scale will apply for the audit work to be undertaken by appointed auditors on the 2025/26 financial statements at relevant principal authorities that have opted into PSAA’s national auditor appointment arrangements for the period 2023/24 to 2027/28.
We have published our information paper for 2024/25 audits with the consultation. The information paper sets out our assessment of the impact on fees of changes in standards and provides information on how bodies and auditors can work together to mitigate the amount of additional audit work needed.