Paul Grant, Accountancy Age, Monday 16 August 2010 at 09:15:00

Work of the Audit Commission to be replaced with private sector contracts

The Audit Commission is to close, with the loss of 2,000 jobs, the governmenthas confirmed.

The closure of the financial watchdog for local authorities across Englandand Wales is intended to save 50m a year, according to communities secretaryEric Pickles.

However, the closure of the Audit Commission could provide an opportunity foraccountancy firms, with councils expected to employ private firms to undertakethe work previously carried out by the Audit Commission.

The 2,000 staff at the Commission were informed of the decision on Friday byan email from management. This move was described as ?disgraceful? by localgovernment minister Bob Neill, according to theBBC.

Shadow communities secretary John Denham said the closure would mean leavingtaxpayers without any ?coherent information? on the value for money theircouncil provided.