Chartered IIA urges Chancellor to prioritise skills, audit reform and internal audit funding in the Budget 

Apprenticeships and audit and governance reform, coupled with investment in internal audit, must feature  in the forthcoming budget, the Chartered IIA has told the Treasury. In its pre-Budget representation to ministers, the Chartered IIA said that investing in skills and public sector internal audit, along with increased trust in business are key to driving growth and public-sector efficiency.

“The Budget is a critical opportunity for the Government to demonstrate its commitment to delivering growth and fiscal responsibility. Investing in skills, workplace training, and apprenticeships will help close the productivity gap, while delivering long-promised audit reform is vital to restoring trust in UK markets,” said Anne Kiem OBE, CEO of the Chartered IIA.  
 
She added that it is equally important to ensure internal audit is adequately resourced across the public sector. “This will support the efficient delivery of public services and help to ensure that every pound spent delivers maximum value for the British people.”

The Chartered IIA urged the Treasury to invest in apprenticeships and in-work training. In particular, it said, the Government should reconsider its plans to remove Apprenticeship Levy funding for Level 7 apprentices older than 22.

“We believe these changes risk undermining the Government’s plan for growth, as upskilling workers of all ages is critical to boosting productivity,” its representation said.

In the case of audit reform, the Chartered IIA said that the need for the Audit Reform and Corporate Governance Bill is more pressing than ever. “We urge the Chancellor of the Exchequer to use her Budget speech to reinforce and re-emphasise the Government's commitment to the Audit Reform and Corporate Governance Bill announced in last year’s King’s Speech.”

The representation said that strengthening audit and corporate governance is essential to laying the foundations for “long term sustainable growth and economic stability”. Accurate, transparent reporting on financial and other business-critical information is crucial to restoring the trust of investors, the public and other stakeholders.

While recognising that audit reform is the responsibility of the Department for Business and Trade, the Chartered IIA wrote “including a clear commitment in the Autumn Budget speech would demonstrate a joined-up approach to delivering the reforms needed to support greater economic stability and sustainable growth across Government.”

It is also vital to ensure that internal audit functions are adequately resourced across every part of the public sector, and the Chartered IIA called for this to be explicitly considered in the Budget. This is vital to maintain good governance, strong risk management and a rigorous control environment.

“Where internal audit functions are adequately resourced and empowered, they play a key role in driving public sector efficiencies, supporting the reform agenda and delivering greater value for money for taxpayers,” the Chartered IIA wrote.