Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Local Government Finance Statement made on 23 February 2026, what the estimated annual operating cost of the proposed Local Audit Office will be; how it will be funded; how its powers and remit will differ from the existing audit framework; and what timetable has been set for clearing the backlog of outstanding local authority audits prior to its establishment in autumn 2026.

The Local Audit Office will take on a remit and powers currently fragmented across the existing system with its statutory objectives and functions detailed in the English Devolution and Community Empowerment Bill. We will confirm the estimated cost and funding mechanisms later in the year, ensuring that it provides greater value for money than the current failed system.

Following the introduction of statutory local audit backstop dates in autumn 2024, the backlog of unaudited accounts has been cleared. The vast majority of opinions for financial years up to and including 2024/25 have been published.

The government continues to engage with local bodies and audit firms to ensure that issues preventing the issuance of audit opinions are resolved, and that remaining opinions are published as soon as practicable.