Briefings and responses

The consultation and its proposals are wide ranging. In our response we will only comment on aspects of the consultation document that are of direct interest to local government.

The LGA welcomes the opportunity to respond to this consultation on the level of audit fees. The consultation proposes that the 2019/20 scale audit fees and indicative certification fees are set at the same level as the scale fees applicable for 2018/19.

With so many 2020/21 audits and several 2019/20 audits still incomplete due to the current crisis in local audit, the fees for 2022/23 still have to be set using incomplete information.

We welcome the opportunity to comment on the proposed new system for audit fee variations. This response has been cleared by lead members of the LGA’s Resources Board.

Opted-in local government and police bodies, November 2020

Our response to the consultation in relation to the issue with the audit of council accounts relating to the valuation of infrastructure assets, we noted that this is an issue that adds to the problems being experienced by local audit.

The LGA is of the opinion that the arrangements introduced in 2002 (Treasury Management code) and 2004 (Prudential Code) have worked well and provide a good governance framework to be followed by local authorities. We are therefore of the strong opinion that the present review should not fundamentally alter these arrangements. General points

While we do not agree with some of the recommendations of the Redmond Review, and others need further consideration, in our response to the review we outlined that a number of quick actions should be taken as soon as possible to have an immediate effect on the audit market.

We continue to engage extensively in discussions with the Government on the implementation of further business rates retention and the Fair Funding Review. These reforms are important and are something local government has called for.