The £49 million funding announced by MHCLG in April 2025 is being provided to overhaul the local audit system and clear the audit backlog. MHCLG has stated that this funding is to cover the costs associated specifically for bodies to clear the backlog as part of the wider plan for change to the local audit system.
The funding does not apply for audit opinions that have been modified for reasons other than the requirement to meet the backstop dates. For example, if an auditor has issued a disclaimed or modified opinion because there are fundamental shortcomings in a body’s systems or records such that it is unlikely the auditor would ever be able to give an unmodified opinion, this is not as a result of the backstop requirements.