Why do the contracts include adjustments for inflation? The local government sector is expected to use efficiency gains to offset inflationary increases

The contracts agreed with firms in 2022 run for a five-year term, with the option of a two-year extension. To ensure continuity and maintain auditor capacity, it was necessary to include provisions that mitigate the impact of inflation. This is a standard practice for contracts of this length and helps support stability and sustainability of the audit market throughout the agreement period.