Soon-to-be disbanded spending watchdog the Audit Commission has given an unequivocal 'no' to Government calls for councils to appoint their own auditors.

It warns the total costs of a fragmented regime for monitoring the sector's annual spend - roughly £200bn or one third of total public expenditure - would exceed the cost of current arrangements, with costs passed on to councils in the form of increased audit fees. In its response to the DCLG's 'Future of local public audit' consultation, it also asserts 'there remains an important regulatory role for a slimmed down Commission or similar body.'