In April 2025 MHCLG announced 16 new commitments for local audit reform following an open consultation, including simplifying financial reporting requirements and increasing capacity to avoid reliance on a small number of auditors.
The reforms are backed by £49 million to help bodies clear their backlogs and restore audit assurance, to be paid in two stages during 2025/26 in the form of a non-ring-fenced grant. Allocations will be based on the size of bodies’ audit fees and the number of modified audit opinions received.
Once the distribution of this funding is confirmed, PSAA will be able to determine the fee variations proposals submitted by auditors for their work on disclaimed audit opinions. We will issue updated statements as soon as possible to bodies to confirm the final fee position for applicable audit years.