Ernst & Young (EY)
Councils are currently addressing persistent financial and governance weaknesses identified by external auditors Ernst & Young, alongside concerns over rising audit fees.
External auditors Ernst & Young (EY) identified significant weaknesses in Tower Hamlets Council's social housing governance for the year ended March 2026, according to a report to the Audit Committee in September 2026. The report also noted that four statutory recommendations and six significant weaknesses from previous years remained outstanding, with actions often implemented too late to demonstrate effectiveness. EY expects to issue a disclaimer opinion for the Pension Fund audit at the November 2026 Audit Committee meeting.
In July 2026, Wandsworth Council's Audit Committee scrutinised a 320% increase in audit fees from EY for the 2025-26 financial year, with additional charges anticipated. Merton Council faces a potential qualified audit opinion for the year ending March 2025 due to documentation delays, following disclaimers for previous years. In November 2025, EY withdrew from Newham Council's Housing Benefit Assurance Process.
EY, a multinational professional services network, acts as an external auditor for local councils. The General Purposes and Audit Committee of Bexley Council is scheduled to discuss this topic on 30 September 2026. In March 2026, EY's report to Tower Hamlets' Audit Committee highlighted significant weaknesses in the council's leadership and governance, leading to a disclaimed audit opinion for the 2024-25 financial statements.
Key facts
- EY identified a significant weakness in Tower Hamlets Council's social housing governance for the year ended 31 March 2026. Source
- EY's interim value for money report highlighted that four statutory recommendations and six significant weaknesses remain outstanding for Tower Hamlets Council. Source
- EY expects to issue a disclaimer opinion for Tower Hamlets Council's Pension Fund audit at the November 2026 Audit Committee meeting. Source
- Wandsworth Council's audit fees from EY for 2025-26 are £363,148, a 320% rise from the 2021/22 scale fee. Source
- EY's report on Tower Hamlets Council's schools audit revealed significant gaps in governance, with two schools receiving a limited assurance opinion. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on, with background from Wikipedia. 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 30 September 2026. Spotted a mistake? Email community@opencouncil.network.