Local Government Auditor’s Report 2026

The 2026 Local Government Auditor’s Report highlights that all 11 councils received unqualified audit opinions for their 2024-25 financial statements, with council income (£1.3 billion) exceeding expenditure for a second consecutive year and usable reserves reaching a record £566 million. The report welcomes improved governance and transparency, particularly around fraud reporting, while recommending continued action to address challenges such as sickness absence and planning application processing times. Brian O’Neill, in his first annual report as Local Government Auditor, emphasises the importance of clear plans to ensure reserves and assets deliver maximum value for ratepayers and encourages councils to continue collaborating to share good practice and improve performance.