PracticeAuditScrapping Audit Commission risks market concentration, warns think-tank

Scrapping Audit Commission risks market concentration, warns think-tank

NLGN warns the government that the danger of messing up reform of the Audit Commission could be market concentration and ineffective audit

SCRAPPING the Audit Commission risks creating market concentration and ineffective audit, a local government think-tank has warned.

The New Local Government Network (NLGN) said the Audit Commission should become a mutual, “to maintain quality and foster competition”, said NLGN director Simon Parker.

“Government is right to highlight the need for independence, decentralisation and market competition, but without adequate safeguards ministers risks recreating the problems of market concentration and ineffective audit that they want to avoid.

“Government needs to fully consider the dangers of getting these reforms wrong. If the new system doesn’t promote a truly competitive market, public engagement and robust audit, it could lead to a decline in public confidence in councils and their spending.”

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