The level of audit fees is also likely to increase significantly over the next year, according to the Public Sector Audit Appointments (PSAA), with concerns that the lack of auditors will lead to further rises while a failure to meet audit deadlines has also created pressure across the market.

PSAA said: ‘At this stage our advice to bodies is to anticipate a major re-set of total fees for 2023/24 involving an increase of the order of 150% on the total fees for 2022/23. The actual total fees will depend on the amount of work required.

‘We appreciate that the extent of this likely increase in audit fees will pose a significant funding challenge for local bodies already facing a daunting range of financial pressures. We have raised this concern with the Department for Levelling Up (DLUHC) for consideration.’

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