Committee publication · Report · 19 June 2026 · HC 47
3rd Report - Appointment of the Chair of the Local Audit Office
From: Housing, Communities and Local Government Committee
Inquiry: Pre-appointment hearing: The Chair of the Local Audit Office
Summary
This report documents the Housing, Communities and Local Government Committee's pre-appointment scrutiny of Bill Butler as the government's preferred candidate for Chair of the Local Audit Office. The LAO is a new body established under the English Devolution and Community Empowerment Act 2026 to manage, oversee and regulate local audit in England. The committee conducted a pre-appointment hearing on 16 June 2026 and endorses Butler's appointment.
Key findings
- Bill Butler, current Chair of Public Sector Audit Appointments Ltd, was selected from 25 applicants following a recruitment campaign launched 21 January 2026 with a deadline of 25 February 2026.
- The role carries a fixed five-year term, remunerated at £765 per day (approximately £119,340 p.a.) for 3 days per week post-establishment, with potential for 5 days per week during the establishment phase.
- Butler has over two decades of public sector leadership experience including roles at the Security Industry Authority (Chief Executive until 2015), Gambling Commission, Healthcare Commission, and Audit Commission, plus multiple non-executive directorships.
- The recruitment process identified 25 applicants; 5 were shortlisted for interview. The shortlist included improved diversity representation with 20% female, 20% ethnic minority, 20% disabled, and 60% from outside London/South East.
- The committee examined Butler's priorities for addressing the local audit crisis, his experience, expectations for LAO culture and leadership, recruitment of the Controller of Local Audit, stakeholder engagement, independence safeguards, and ability to manage time commitments across multiple roles.
Recommendations
- No specific recommendations made; the committee endorses Butler's appointment and expresses expectation of receiving progress updates on the local audit crisis during his tenure.
Tone
FactualTopics
Key actors
Bill Butler, Florence Eshalomi, Will Garton, Rosie Seymour, Nick Scarles, Annell Smith, Minister of State for Local Government and Homelessness, Local Audit Office
Notable line
“Tackling the local audit crisis will be a significant challenge not only for the Local Audit Office and its Chair, but for local authorities and local auditors for several years.”
Key Quotes
“We are pleased to endorse Bill Butler's appointment as Chair of the Local Audit Office and wish him well in the role.”
“The three-day time commitment reflected advice from external stakeholders and the scale and complexity of the problems that the Local Audit Office would have to address in the local audit sector.”
“Leadership experience specifically in an audit body was not considered essential as this would significantly restrict the candidate pool and undermine diversity, and that sufficient governance experience in another large or complex organisation would be adequate.”
Source · parliament.uk record ↗