Local audit reforms ‘on course to save £1.2bn’

10 Mar 14
Plans to abolish the Audit Commission remain on track to save £1.2bn over ten years, the Department for Communities and Local Government has stated today.

By Richard Johnstone | 10 March 2014

Plans to abolish the Audit Commission remain on track to save £1.2bn over ten years, the Department for Communities and Local Government has stated today.

Following a consultation on the secondary legislation being introduced as part of the Local Audit and Accountability Act, which will shut the commission by the end of March 2015, local government minister Brandon Lewis insisted the savings target would be met.

There was broad support for the introduction of the new audit regime, and moves to close the commission has already saved £400m, he said.

‘The decision to abolish the Audit Commission was because it was a wasteful, ineffective and undemocratic. What should have been a voice for taxpayers became a creature of the central state,’ he added.

‘Instead of just auditing accounts – it was regulating, micromanaging, and inspecting, forcing councils to spend time ticking boxes and filling in forms rather than getting on with the business of local government.

‘Better local audit arrangements will replace central diktat and as a result we remain on track to save taxpayers £1.2bn.’

Following the consultation, the government also confirmed that it would support efforts by local authorities to make savings through joint procurement of audit services, and would allow councils to share an auditor panel.

The panels will be established to advise the authority on the appointment of an auditor, as well as on ensuring an independent relationship. It must have a majority of independent members.

We will consider with the sector, guidance on the experience and skills to look for when recruiting panel members, and how best to recruit them,’ the consultation summary stated. 

Following the consultation, detailed regulations will be published before the summer to implement the new regime, the DCLG confirmed. These will include rules on the appointment of auditors and auditor resignation/removal, the eligibility and regulation of auditors and the conduct of local audit, including public interest reports.

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