Local Audit Backstop: 27 February 2026

When this Government took office in July 2024, one of our top priorities was to fix the broken local audit system it inherited, which was failing both local bodies and taxpayers alike. Determined to fix the foundations, restore confidence and put the system back on a stable footing, we took decisive action to introduce a series of statutory audit opinion backstop dates in autumn 2024. The backstops have successfully cleared the backlog of unaudited local body accounts and are now restoring a system of timely reporting and assurance. This progress provides a strong platform for rebuilding assurance and delivering wider reforms of the local audit system.

Unless exempt, all local bodies in England were required to publish their statement of accounts, including the audit opinion, for 2024-25 by 27 February 2026. The system has taken another significant step forward in returning to timely publication, with over 91% of opinions published by this date. This demonstrates a consistent improvement in timely publication since the introduction of the backstops, up from 84% at the first backstop and 87% at the second backstop. As of 9 March 2026, the publication figure for 2024-25 had subsequently increased to 93%.

Due to the time constraints of the backstops and in line with expectations, approximately 45% of bodies received a disclaimed opinion at this backstop, and 9% of published opinions have moved from a disclaimed opinion to a qualified opinion. Almost 3% of published opinions demonstrate fully restored assurance by moving to an unqualified opinion. Approximately 44% of bodies received an unmodified opinion, with only a very small number receiving a disclaimed opinion for the first time. This represents encouraging progress, despite the ongoing challenges to rebuilding assurance that I set out in my statement on 2 December 2025.

In total, 33 non-exempt bodies failed to publish their opinions by the backstop. A list of these bodies has been published on gov.uk, including where opinions were published shortly after the backstop.

In December 2025, I also provided an update on the status of the publication of audit opinions up to and including 2023-24. Since this update, further outstanding opinions for these years continue to be published as factors preventing the issuance of opinions are resolved. Over 99% of opinions have now been published for financial years outstanding, and 97% for financial years up to 2023-24. The non-compliance lists for the two previous backstops have also been updated.

The Department continues to engage with bodies with outstanding opinions to ensure that they are published as soon as practicable, and it will not hesitate to take further action with bodies demonstrating a pattern of continued non-compliance.

The deadline for publication of audited accounts for the financial year 2025-26 is 31 January 2027. In line with amendments made to the accounts and audit regulations 2015, bodies are required to publish their draft accounts for this financial year by 30 June 2026.

My Department will continue to work proactively and co-operatively with local bodies and audit firms to support a return to timely account publication and to drive the system-wide rebuilding of assurance.

[HCWS1474]