Value for money arrangements
Councils are addressing disclaimed audit opinions and strengthening financial controls to improve value for money arrangements.
Lambeth Council received a disclaimed audit opinion for its 2025-26 financial statements in October 2026, the third consecutive year auditors could not express an opinion on whether the accounts present a true and fair view due to historic challenges and pension fund issues. Similarly, Tower Hamlets Council is projected to face a disclaimed audit opinion until 2029-30, as external auditors EY indicated in July 2026, requiring a multi-year effort to achieve an unmodified opinion.
To address these issues, Tower Hamlets Council is implementing a £4.5 million, three-year plan to rectify audit failures and strengthen its internal control environment, discussed in July 2026. This initiative responds to significant weaknesses identified by external auditors EY. In September 2026, Kensington and Chelsea Council's Audit & Transparency Committee reviewed an Auditor's Annual Report highlighting significant weaknesses in governance and housing safety standards.
These discussions concern councils' value for money arrangements, which are the processes and systems in place to ensure public money is spent economically, efficiently, and effectively. The City of London Council's Audit and Risk Management Committee also focused on reviewing draft 2025-26 financial statements and associated audit findings in September 2026, as part of their oversight of these arrangements.
Key facts
- Lambeth Council received a disclaimed opinion from external auditors for its 2025-26 financial statements in October 2026. Source
- Lambeth Council's disclaimed opinion in October 2026 is its third consecutive for financial statements. Source
- Tower Hamlets Council faces a disclaimed audit opinion potentially until the 2029-30 financial year, as projected in July 2026. Source
- Tower Hamlets Council is implementing a £4.5 million, three-year plan to address audit failures, discussed in July 2026. Source
- External auditors EY identified several key risks for Tower Hamlets, including management override of controls, in July 2026. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 23 October 2026. Spotted a mistake? Email community@opencouncil.network.