Sunday, 20 April 2014

Councils to choose auditors after shake up

The inspection of local authority housing services will be shaken up after the government outlined plans for councils to be able to appoint their own auditors.

The Department for Communities and Local Government published its proposals for the way local government bodies will be audited yesterday, following the decision last year to abolish the Audit Commission.

The move comes after CLG launched a consultation last year as it sought to reduce the cost of auditing.

Housing minister Grant Shapps said: ‘We are taking another step down to road to replacing expensive centralised local public audit with a more streamlined and competitive local audit structure.

‘Councils are already showing they can be open and accountable - publishing details on their day to day business from spending to structure and taking control of their own auditing affairs.’

Local public bodies, including councils, will now be able to appoint auditors from an open market, with the model based on private sector auditing and overseen by the Financial Reporting Council and National Audit Office.

The abolition of the Audit Commission was labelled a ‘missed opportunity’ by the communities and local government select committee. In its report, the cross-party group of MPs said that a wider review of the scope of public sector auditing was required.

Labour MP Clive Betts, who chairs the committee, said that while ‘some of the points’ of the report had been taken on, it remained ‘absolutely key’ that any new auditors should be able to retain their independence.

Readers' comments (1)

  • What does this mean that Auditor's wanting the business will be do the bidding of the Registered Social Landlord

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up

More Newsletters




  • On course for recovery


    St Mungo’s is helping people turn their lives around by getting them back into the classroom. Kate Youde visits recovery college to find out how

  • Precision thinking

    15 January 2014

    Analysis of its lets, voids and tenancy lengths has allowed Adactus Housing Group to cut its planned maintenance bill by millions of pounds a year and plough the savings into developing new homes. Kate Youde finds out how

  • The return of PFI


    New-look private finance initiatives could help ease the housing crisis, says Penny Rinta-Suksi, housing and regeneration partner at Bevan Brittan

  • Energy efficient

    10 May 2013

    Landlords should carefully consider energy efficient offers that are likely to come their way, says Patrick Sweeney

  • The cost-cutting continues


    More cuts to legal aid will further limit tenants’ ability to bring cases to court, says Ole Hansen, partner at Hansen Palomares Solicitors