SAPPP launches consultation on proposed new proper practices framework for smaller authorities
The Smaller Authorities Proper Practices Panel (SAPPP) has launched a consultation on a proposed new framework of proper practices for Category 2 Authorities in England, inviting views from parish and town councils, clerks, auditors, taxpayers and other stakeholders.
The consultation marks the second stage of a wider review of the governance, accountability and accounting framework for smaller authorities. The review is being undertaken by the Chartered Institute of Public Finance and Accountancy (CIPFA) on behalf of SAPPP, with support from the Smaller Authorities' Audit Appointments (SAAA).
Proper practices set out the mandatory standards that Category 2 Authorities must follow in areas including governance, accountability, financial reporting and audit. With the current framework having been in place for more than a decade, SAPPP agreed that a full review was needed to ensure the guidance remains relevant, proportionate and fit for purpose.
The consultation seeks feedback on two proposed documents: Proper Practices Code for Category 2 Authorities (England) and the Code of Practice for Internal Audit of Category 2 Authorities (England).
Together, the proposed codes aim to provide a clearer and more consistent approach to governance, financial management, accountability and internal audit, while supporting public confidence in the sector.
The proposals have been informed by feedback gathered during an earlier consultation, which attracted responses from councillors, clerks, auditors, sector bodies and members of the public. Respondents identified opportunities to improve areas including accounts preparation, internal audit arrangements, training and the usability of existing guidance.
This second consultation focuses on whether the proposed codes are clear, practical and sufficient to help authorities meet their statutory responsibilities. Stakeholders are particularly encouraged to comment on proposed changes to the Annual Governance Statement, the treatment of reserves, the presentation of accounts and the new approach to internal audit.
SAPPP chair, Alan Mellor, said, "This review provides an important opportunity to modernise the proper practices framework and ensure it continues to support strong governance, accountability and financial stewardship across the smaller authorities sector. We encourage everyone with an interest in the sector to take part in the consultation and help shape the final documents."
Following the consultation, SAPPP will consider all responses before finalising the new framework. Subject to approval, the updated documents are expected to be introduced for the 2027/28 financial year.
Have your say on the proposed framework by reviewing the consultation documents and submitting a response by 31 October 2026.
