Member

Amendment 246 seeks to remove the clause that would enable the Local Audit Office, once established, to deliver local audit services through forming a firm, or by partnering with existing providers in the private market. The Government recognise that capacity within the local audit market is severely constrained. There is a significant shortage of auditors and only a limited number of firms operating in the sector. In April last year, following strong support for our consultation proposal, we committed to establishing public provision of audit services to support the private market. But let me be clear: final decisions are yet to be taken on the model for public provision, including whether the local audit office will act as the public provider. The Bill provides flexibility to explore a range of delivery models. At this stage, it is important that we leave that flexibility in place.