Cumulative £440m audit savings could be achieved were the government to lock in  low prices and extend  existing 2012 and 2014 contracts until the end of the decade, the Audit Commission has claimed.

The news follows the release of statistics which suggest fees for local audit arrangements are at their lowest level for a quarter of a century.

Figures released today by the soon-to-be-disbanded Audit Commission show that fees for 2015/16 are set to decrease by 25%, as a result of a retendering exercise held this year of work carried out under its older audit contracts.