A scathing new report has exposed the dire consequences of scrapping the Audit Commission in England, revealing a system in chaos with councils now paying exorbitant fees for essential financial oversight.
The research, conducted by a leading public finance thinktank, shows that local authorities are spending up to 40% more on audit services since the Commission's abolition in 2015, with some councils waiting years to have their accounts signed off.
Financial Freefall
The report paints a picture of a system in crisis:
- Average audit fees have risen from £248,000 to £347,000 per council
- One in five councils waited over two years for completed audits
- Nearly half of all local authorities missed statutory deadlines
"What we're seeing is the predictable outcome of dismantling a system that worked," said the report's lead author. "The supposed savings from abolishing the Commission have been entirely wiped out by these spiraling costs."
Who's Watching the Watchmen?
With no central oversight body, the report highlights how:
- Private firms now dominate the audit market, charging premium rates
- There's no effective mechanism to ensure quality or consistency
- Smaller councils struggle to find auditors willing to take on their work
The situation has become so severe that some councils are being forced to raid frontline service budgets to cover audit costs, directly impacting local communities.
A System in Crisis
The report concludes with a stark warning: without urgent reform, the financial accountability of local government in England risks complete breakdown. With no clear solution in sight, taxpayers continue to pay the price for what many see as a failed experiment in deregulation.
