Audit build-back grant 2024 to 2025: technical note
Published 10 July 2025
Applies to England
© Crown copyright 2025
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1. Eligibility
The bodies eligible to receive this grant are relevant authorities as defined under Schedule 2 of the Local Audit and Accountability Act 2014, and are bodies in receipt of disclaimed audit opinions that are primarily the result of statutory audit backstops. As such, 213 local bodies (including 4 pension funds) were eligible for payment.
The Accounts and Audit Regulations 2015, as amended, require bodies to publish audited accounts by statutory backstop dates, which includes publication on their website (specifically, their accountability statements, defined in Regulation 9A(9), which includes the audit opinion).
The grant is released to eligible bodies subject to publication of outstanding audited accounts and payment of audit fees.
Non-compliance with statutory backstops
In July 2024, the government committed to publishing lists of bodies that do not comply with the requirements to publish audited accounts by a backstop date. The list of bodies that did not comply with the first backstop date of 13 December 2024 was published by the government on 4 March 2025. A second list of bodies that did not comply with the second backstop date of 28 February 2025 was published on 7 July 2025.
Bodies with more than three disclaimed audit opinions
Grant funding relates only to costs arising from the backstop legislation. In many cases, bodies with more than three disclaimed audit opinions have underlying issues that have made it difficult for auditors to certify their accounts. The three-year limit will be reviewed as part of a wider funding review later in 2025.
Qualifications
The net cost of audit opinions which have been qualified due to the backstop will be considered during the review of the funding model later in 2025. It is likely that build back costs will be lower in these instances due to a lesser amount of build back work to be completed compared to audits which have been fully disclaimed.
2. Methodology
The grant covers the net cost of rebuilding assurance, meaning that it will take into account relevant costs over the whole period of the backstop programme and build-back period. ‘Relevant costs’ in this context means audit fees for rebuilding assurance minus any reduction in the cost of disclaimed audits relative to the cost if the audit had been completed in full.
The funding package is based on cost estimates provided by audit firms in summer 2024, based on initial guidance published by the National Audit Office (NAO) and endorsed by the Financial Reporting Council (FRC).
The grant is based on a proportion of the estimated total cost of building back audit assurance over the build-back period, expressed as a percentage of 2023/24 audit fees and the number of disclaimed audit opinions for periods up to and including 2023/24:
- 1 disclaimer: 132% of the 2023/24 audit scale fee
- 2 disclaimers: 151% of the 2023/24 audit scale fee
- 3 or more disclaimers: 185% of the 2023/24 audit scale fee.
These total costs have been adjusted for an assumed reduction in total audit fees for bodies receiving a disclaimer. This represents the cost of a disclaimed audit minus the cost of conducting a full audit, as bodies will be liable to pay the disclaimer fee and cost of build-back and not the cost of a full audit resulting in an unmodified opinion. This adjustment aligns with the New Burdens Doctrine, which requires net costs to be funded.
3. Payments
On 9 April 2025, the government announced that it was making available up to £49 million of grant funding to cover the additional costs of clearing the local audit backlog. The funding will be paid in two stages, with up to £18 million allocated for 2024/25 and up to £31 million allocated for 2025/26.
The first instalment of grant allocations for 2024/25 were made on 26 and 27 June. 189 bodies were paid on 26 June with 24 additional payments being made on 27 June to bodies on behalf of respective eligible authorities (for example Chief Constables, pension funds and development corporations).
Review of costs prior to the second instalment of payments
The second instalment will be paid in early 2026 after a review of costs, which may result in a change to grant allocations. Public Sector Audit Appointments (PSAA) will work with firms to obtain revised cost estimates, which will then inform the review of overall costs and the funding model to assess whether changes are necessary. This review will also consider fee variation data, including variations in the cost of disclaimed audits.
Additional information
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Some bodies (mostly bodies that published outstanding audited accounts after the backstop dates) are now eligible for payment in 2024/25, but were not included in the June allocation determinations. These bodies will be paid in the coming months.
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From April 2023, the councils of Scarborough, Craven, Hambleton and Richmondshire were abolished as part of the creation of a new unitary authority, North Yorkshire Council. The disclaimed audit opinions of Scarborough, Craven, Hambleton and Richmondshire have been accounted for in the allocation determined for North Yorkshire Council.
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From April 2023, the functions of South Yorkshire Passenger Transport Executive (SYPTE) were transferred to the South Yorkshire Mayoral Combined Authority. Disclaimed audit opinions relating to SYPTE have been accounted for in the allocation determined for South Yorkshire Mayoral Combined Authority.
Table 1: Summary of Allocations for Eligible Bodies
| Recipient | Recipient Type | Payment £ |
|---|---|---|
| Adur District Council | District Council | £37,116 |
| Amber Valley Borough Council | District Council | £33,228 |
| Arun District Council | District Council | £41,601 |
| Ashford Borough Council | District Council | £46,719 |
| Babergh District Council | District Council | £48,922 |
| Basingstoke and Deane Borough Council | District Council | £40,885 |
| Bassetlaw District Council | District Council | £41,554 |
| Bedford UA | Unitary Authority | £79,500 |
| Bedfordshire Fire and Rescue Service | Fire and Rescue Authority | £24,373 |
| Berkshire Pension Fund (c/o Royal Borough of Windsor and Maidenhead) | Pension Fund Audit | £25,867 |
| Bexley London Borough | London Borough Council | £95,778 |
| Blaby District Council | District Council | £43,888 |
| Blackburn with Darwen Borough Council | Unitary Authority | £72,053 |
| Blackpool Borough Council | Unitary Authority | £79,586 |
| Bolsover District Council | District Council | £34,265 |
| King’s Lynn and West Norfolk Borough Council | District Council | £46,189 |
| Broxbourne Borough Council | District Council | £40,173 |
| Bournemouth, Christchurch and Poole (UA) | Unitary Authority | £113,082 |
| Bracknell Forest Council | Unitary Authority | £97,531 |
| Braintree District Council | District Council | £52,969 |
| Breckland District Council | District Council | £37,034 |
| Brentwood Borough Council | District Council | £59,644 |
| Brighton and Hove City Council | Unitary Authority | £98,343 |
| Broadland District Council | District Council | £41,742 |
| The Broads Authority | National Park Authority | £17,506 |
| Buckinghamshire Fire and Rescue Services | Fire and Rescue Authority | £24,951 |
| Buckinghamshire UA | Unitary Authority | £204,150 |
| Bury Metropolitan Borough Council | Metropolitan District Council | £103,245 |
| Calderdale Metropolitan Borough Council | Metropolitan District Council | £107,393 |
| Cambridge and Peterborough Combined Authority | Combined Authority | £27,959 |
| Cambridgeshire Fire and Rescue Services | Fire and Rescue Authority | £30,846 |
| Cannock Chase District Council | District Council | £48,480 |
| Chelmsford City Council | District Council | £53,734 |
| Cheltenham Borough Council | District Council | £40,238 |
| Cherwell District Council | District Council | £45,704 |
| Chesterfield Borough Council | District Council | £39,968 |
| Chichester District Council | District Council | £37,599 |
| Chief Constable of Bedfordshire | Chief Constable | £15,329 |
| Chief Constable of Cambridgeshire | Chief Constable | £15,329 |
| Chief Constable of Derbyshire | Chief Constable | £16,031 |
| Chief Constable of Durham | Chief Constable | £10,042 |
| Chief Constable of Hampshire | Chief Constable | £13,854 |
| Chief Constable of Kent | Chief Constable | £14,137 |
| Chief Constable of Leicestershire | Chief Constable | £15,503 |
| Chief Constable of Lincolnshire | Chief Constable | £15,554 |
| Chief Constable of Norfolk | Chief Constable | £11,608 |
| Chief Constable of North Yorkshire | Chief Constable | £11,014 |
| Chief Constable of Northamptonshire | Chief Constable | £15,503 |
| Chief Constable of Nottinghamshire | Chief Constable | £15,068 |
| Chief Constable of Staffordshire | Chief Constable | £11,976 |
| Chief Constable of Suffolk | Chief Constable | £11,571 |
| Chief Constable of Surrey | Chief Constable | £11,515 |
| Chief Constable of Sussex | Chief Constable | £14,128 |
| Chief Constable of Wiltshire | Chief Constable | £12,391 |
| Wakefield Metropolitan District Council | Metropolitan District Council | £102,638 |
| Coventry City Council | Metropolitan District Council | £145,948 |
| Crawley Borough Council | District Council | £45,700 |
| Cumbria Fire and Rescue Service | Fire and Rescue Authority | £23,722 |
| Darlington Borough Council | District Council | £71,325 |
| Derby City Council | District Council | £115,228 |
| Derbyshire County Council | County Council | £76,144 |
| Derbyshire Fire and Rescue Services | Fire and Rescue Authority | £34,875 |
| Dorset Council (UA) | Unitary Authority | £145,109 |
| Dorset Pension Fund | Pension Fund Audit | £22,037 |
| Dover District Council | District Council | £48,338 |
| East Cambridgeshire District Council | District Council | £38,595 |
| East Devon District Council | District Council | £48,136 |
| East Lindsey District Council | District Council | £36,446 |
| East Suffolk Council | District Council | £68,060 |
| East Sussex Fire and Rescue Services | Fire and Rescue Authority | £24,644 |
| Eastleigh Borough Council | District Council | £67,955 |
| Epping Forest District Council | District Council | £43,707 |
| Erewash Borough Council | District Council | £41,536 |
| Essex County Council | County Council | £93,919 |
| Fareham Borough Council | District Council | £37,170 |
| Fenland District Council | District Council | £37,647 |
| Fylde Borough Council | District Council | £45,675 |
| Gedling Borough Council | District Council | £41,621 |
| Gosport Borough Council | District Council | £39,574 |
| Great Yarmouth Borough Council | District Council | £54,499 |
| Greater Manchester Combined Authority | Combined Authority | £56,083 |
| Guildford Borough Council | District Council | £77,381 |
| Hampshire and Isle of Wight FRS | Fire and Rescue Authority | £27,142 |
| Hampshire County Council | County Council | £77,969 |
| Harborough District Council | District Council | £30,121 |
| Haringey London Borough | London Borough Council | £152,985 |
| Hart District Council | District Council | £39,979 |
| Hastings Borough Council | District Council | £49,993 |
| Havant Borough Council | District Council | £36,456 |
| Hertfordshire County Council | County Council | £92,181 |
| Hertsmere Borough Council | District Council | £40,809 |
| Hinckley and Bosworth Borough Council | District Council | £45,112 |
| Horsham District Council | District Council | £38,767 |
| Hounslow London Borough | London Borough Council | £90,112 |
| Huntingdonshire District Council | District Council | £39,714 |
| Hyndburn Borough Council | District Council | £43,795 |
| Ipswich Borough Council | District Council | £57,958 |
| Isle of Wight Council | Unitary Authority | £85,030 |
| Bromley London Borough | London Borough Council | £104,284 |
| Camden London Borough | London Borough Council | £109,454 |
| Ealing London Borough | London Borough Council | £140,624 |
| Harrow London Borough | London Borough Council | £92,099 |
| Havering London Borough | London Borough Council | £134,712 |
| Lambeth London Borough | London Borough Council | £122,279 |
| Redbridge London Borough | London Borough Council | £123,263 |
| London Borough of Richmond upon Thames | London Borough Council | £74,692 |
| Tower Hamlets London Borough | London Borough Council | £154,957 |
| Waltham Forest London Borough | London Borough Council | £135,895 |
| London Fire Commissioner | Fire and Rescue Authority | £48,229 |
| Maldon District Council | District Council | £46,628 |
| Manchester City Council | Metropolitan District Council | £127,724 |
| Medway Council | Unitary Authority | £125,891 |
| Melton Borough Council | District Council | £41,973 |
| Merton London Borough | London Borough Council | £102,228 |
| Mid Suffolk District Council | District Council | £45,729 |
| Mid Sussex District Council | District Council | £38,325 |
| Middlesbrough Council | Unitary Authority | £103,066 |
| Milton Keynes Council | Unitary Authority | £117,500 |
| New Forest District Council | District Council | £43,291 |
| New Forest National Park | National Park Authority | £10,409 |
| Newcastle City Council | Metropolitan District Council | £95,343 |
| Newham London Borough | London Borough Council | £145,876 |
| Norfolk County Council | County Council | £92,969 |
| North Hertfordshire District Council | District Council | £39,071 |
| North Norfolk District Council | District Council | £48,333 |
| North Northamptonshire Council | Unitary Authority | £236,062 |
| North Tyneside Council | Metropolitan District Council | £83,536 |
| North Warwickshire Borough Council | District Council | £42,210 |
| North Yorkshire Council (UA) | Unitary Authority | £380,830 |
| Northamptonshire Fire and Rescue Service | Fire and Rescue Authority | £25,137 |
| Northamptonshire Police and Crime Commissioner | Police and Crime Commissioner | £33,133 |
| Norwich City Council | District Council | £67,934 |
| Nottingham City Council | Unitary Authority | £191,793 |
| Nottinghamshire Fire Services | Fire and Rescue Authority | £30,554 |
| Nuneaton and Bedworth Borough Council | District Council | £40,140 |
| Old Oak and Park Royal Development Corporation | GLA and its functional bodies | £17,649 |
| Oxford City Council | District Council | £72,364 |
| Oxfordshire County Council | County Council | £76,151 |
| Pendle Borough Council | District Council | £30,129 |
| Peterborough City Council | Unitary Authority | £103,416 |
| Plymouth City Council | Unitary Authority | £120,203 |
| Bedfordshire Police and Crime Commissioner | Police and Crime Commissioner | £28,264 |
| Cambridgeshire Police and Crime Commissioner | Police and Crime Commissioner | £28,897 |
| Derbyshire Police and Crime Commissioner | Police and Crime Commissioner | £31,797 |
| Dorset Police and Crime Commissioner | Police and Crime Commissioner | £22,645 |
| Durham Police and Crime Commissioner | Police and Crime Commissioner | £20,244 |
| Hampshire Police and Crime Commissioner | Police and Crime Commissioner | £29,896 |
| Kent Police and Crime Commissioner | Police and Crime Commissioner | £32,453 |
| Leicestershire Police and Crime Commissioner | Police and Crime Commissioner | £30,684 |
| Lincolnshire Police and Crime Commissioner | Police and Crime Commissioner | £29,071 |
| Norfolk Police and Crime Commissioner | Police and Crime Commissioner | £24,916 |
| Nottinghamshire Police and Crime Commissioner | Police and Crime Commissioner | £30,388 |
| Suffolk Police and Crime Commissioner | Police and Crime Commissioner | £23,871 |
| Surrey Police and Crime Commissioner | Police and Crime Commissioner | £27,354 |
| Sussex Police and Crime Commissioner | Police and Crime Commissioner | £28,415 |
| Wiltshire Police and Crime Commissioner | Police and Crime Commissioner | £23,889 |
| Portsmouth City Council | Unitary Authority | £101,973 |
| Reading Borough Council | Unitary Authority | £95,564 |
| Rochford District Council | District Council | £46,836 |
| Rossendale Borough Council | District Council | £43,042 |
| Royal Berkshire Fire and Rescue Services | Fire and Rescue Authority | £32,556 |
| Windsor and Maidenhead Royal Borough Council | London Borough Council | £78,496 |
| Rushmoor Borough Council | District Council | £45,499 |
| Sandwell Metropolitan Borough Council | Metropolitan District Council | £153,602 |
| Sefton Metropolitan Borough Council | Metropolitan District Council | £119,366 |
| Sevenoaks District Council | District Council | £46,611 |
| Sheffield City Council | Metropolitan District Council | £120,047 |
| Somerset Council (UA) | Unitary Authority | £173,515 |
| South Cambridgeshire District Council | District Council | £53,809 |
| South Derbyshire District Council | District Council | £46,393 |
| South Holland District Council | District Council | £36,655 |
| South Norfolk Council | District Council | £51,127 |
| South Oxfordshire District Council | District Council | £37,148 |
| South Tyneside Council | Metropolitan District Council | £94,875 |
| South Yorkshire Mayoral Combined Authority | Combined Authority | £66,059 |
| Southampton City Council | Unitary Authority | £97,145 |
| Spelthorne Borough Council | District Council | £66,556 |
| Staffordshire Police and Crime Commissioner | Police and Crime Commissioner | £24,570 |
| Stevenage Borough Council | District Council | £60,044 |
| Stoke-on-Trent City Council | Unitary Authority | £136,478 |
| Stratford-on-Avon District Council | District Council | £44,908 |
| Suffolk County Council | County Council | £69,699 |
| Surrey Heath Borough Council | District Council | £43,540 |
| Tameside Metropolitan Borough Council | Metropolitan District Council | £67,541 |
| Teesside Pension Fund (C/O Middlesbrough Council) | Pension Fund Audit | £24,080 |
| Teignbridge District Council | District Council | £42,388 |
| Tendring District Council | District Council | £52,335 |
| Test Valley Borough Council | District Council | £39,467 |
| Three Rivers District Council | District Council | £43,052 |
| Torbay Council | Unitary Authority | £81,320 |
| Tower Hamlets Pension Fund | Pension Fund Audit | £23,250 |
| Trafford Metropolitan Borough Council | Metropolitan District Council | £85,894 |
| Uttlesford District Council | District Council | £47,119 |
| Vale of White Horse District Council | District Council | £36,620 |
| Wandsworth London Borough | London Borough Council | £84,971 |
| Warwick District Council | District Council | £49,396 |
| Watford Borough Council | District Council | £48,152 |
| Welwyn Hatfield Borough Council | District Council | £44,164 |
| West Berkshire Council | Unitary Authority | £87,103 |
| West Lancashire Borough Council | District Council | £68,332 |
| West Northamptonshire Council | Unitary Authority | £236,062 |
| West Suffolk Council | District Council | £52,239 |
| West Sussex County Council | County Council | £79,347 |
| West Yorkshire Combined Authority | Combined Authority | £25,052 |
| West Yorkshire Fire and CD Authority | Fire and Rescue Authority | £27,228 |
| Westmorland and Furness Council | Unitary Authority | £156,468 |
| Wigan Metropolitan Borough Council | Metropolitan District Council | £80,709 |
| Winchester City Council | District Council | £41,218 |
| Wokingham Borough Council | Unitary Authority | £99,103 |
| Worthing Borough Council | District Council | £36,635 |
| Wychavon District Council | District Council | £41,449 |
| Wyre Borough Council | District Council | £46,258 |
| Yorkshire Dales National Park | National Park Authority | £11,056 |
Total: £13,249,193