Government backs audit threshold increase for smaller authorities 

The government has backed our long-standing calls by laying a statutory instrument before parliament to raise the audit threshold for smaller authorities from £6.5 million to £15 million.

This change, which, alongside the Smaller Authorities’ Audit Appointments (SAAA), we have vigorously championed, is a significant step forward in easing the audit burden on growing parish and town councils.

The statutory instrument is subject to the affirmative procedure, meaning it must be approved by both the House of Commons and the House of Lords before the minister can sign it off. The Ministry of Housing, Communities, and Local Government aims for the new rules to be in place by the end of September this year.

If approved, the amendment to the Local Audit and Accountability Act 2014 will take effect from the 2025/26 financial year. The current £6.5 million threshold will remain in effect for the 2024/25 year.

We will continue to keep the sector informed as the change progresses through parliament.