After much discussion and many months of preparatory work, the Government has now formally introduced the ‘backstop', a Statutory Instrument, supported by a new National Audit Office Code, which is designed to enable the reset of local audit. The legislation requires auditors and local bodies to comply with the backstop publication date for years up to 2022/23 of 13 December 2024, and for 2023/24 of 28 February 2025. Where audit work is not complete, this will give rise to a disclaimer of the audit opinion. In plain English, this means that the auditor will have been unable to form a view on whether the accounts are true and fair (as they will not have had assurance across a wide number of balances and transactions). 

At Grant Thornton we have mixed feelings about the backstop. On the one hand, the case for urgent action is clear. By September 2023, the number of delayed audit opinions had already exceeded 900. A count at September 2024 would show this figure to be well over 1000. This is unacceptable. Stakeholders are not gaining the assurance that they expect or deserve, and the loss in local accountability is clear.