NALC welcomes strong audit results but calls for sector-wide support on governance and compliance pressures
England's smaller local authorities are continuing to demonstrate strong overall accountability, with most councils meeting audit standards and nearly all submitting their annual accounts, according to the latest national audit report from the Smaller Authorities' Audit Appointments (SAAA).
The 2024/25 review shows that 97% of authorities submitted their Annual Governance and Accountability Returns (AGARs) by the end of September, while two-thirds (67%) received clean, unqualified audit opinions. Auditors also maintained high levels of performance, completing 94% of reviews by the statutory deadline, rising to 96% by year-end. These findings highlight the resilience of a sector responsible for delivering vital local services and managing more than £856 million in annual funding.
However, the report also exposes longstanding and systemic challenges that remain unresolved. Despite the positive headline figures, issues such as late submissions, a number of qualified audit opinions, and Public Interest Reports continue to affect a minority of authorities. These problems are often linked to capacity constraints, complexity in regulatory requirements, and inconsistent application of guidance, rather than deliberate non-compliance.
Game-changing steps are planned by SAAA, including moving the annual governance and accountability return online. It's welcome support for the work of the panel overseeing improvement to proper practices, which is helping too.
However, we are urging renewed focus by parish and town councils on good governance and a national drive on sector-wide improvement, including stronger support for councils to build capability, improve compliance, and apply guidance more consistently.
Whilst the report makes very positive reading and reflects the success of the audit framework and SAAA, it also shows that in many respects, progress has stalled. Without targeted intervention and support, we risk seeing the same issues repeated year after year.
Jonathan Owen
NALC chief executive
