The directors present the strategic report for the year ended 31 March 2025.
Principal activities
The company's principal activities are as outlined in the Director’s Report.
The Group reported a surplus of £430,640 for the financial year. Turnover from LABC operations, excluding grant income, was £3,482,306. Despite the ongoing challenges in the new homes market, commission earnings from LABC Warranty have stabilised. LABC teams continue to work closely with our warranty partner, MD Insurance Services Limited, to develop a long-term strategic plan aimed at strengthening and growing the brand.
Government grant income drawn down during the year totalled £5,835,234, with the majority allocated to funding salaries for new recruits seconded to member authorities. Encouragingly, all local authorities in England and Wales remained paid members in 2024–25, ensuring that LABC maintains a unified membership voice when engaging with stakeholders, government departments, and regulators.
The LABC Board continues to exercise careful financial stewardship, safeguarding the Group’s economic stability while ensuring that resources are directed towards delivering key strategic initiatives in support of members’ operational, legislative and regulatory needs.
Group Strategy and future outlook
Overall, LABC's investments on behalf of members continue to focus on the following key areas:
Government, Legislation and Regulations
Guiding members through the new secondary legislation in England and Wales has required significant time investment from our technical, standards and learning teams to update our member resources, policies, procedures documentation, and is set to continue into 2025-2026.
Senior LABC employees will continue to form part of various Government committees and task forces, the Building Advisory Committee and the Industry Competence Committee.
The announcement of a new MHCLG Agency to transition into the new ‘single regulator’ will again involve a significant amount of senior management time in providing support and guidance.
The Grenfell Tower Public Inquiry phase 2 report was published on 4 September 2024 with the Governments response published in March 2025. LABC is working with MHCLG, the BSR and a newly formed Independent Panel chaired by Dame Judith Hackitt to consider the future reform of the building control sector which was a key recommendation of the Grenfell Inquiry.
Learning and development (to include Government grants)
Since LABC began delivering qualifications in August 2018, there have been 2,363 qualification completions. In the current year alone, there were 382 new qualification starts, comprising 121 self-funded, 179 SR20, and 82 SR21.
The SR20 upskilling project continues to perform strongly, with impressive pass rates of 90% at Level 4, 94% at Level 5, 85% at Level 6 Enforcement, and 86% at Level 6 Fire. Since funding began in 2020, a total of 1,184 qualifications has been successfully completed.
Meanwhile, 148 recruits in LABC’s SR21 backfilling project continue to outperform previous non-funded intakes. At Level 4 we have seen 12% fewer failures and 22% more distinction grades, and at Level 5 there are 7% fewer failures and 6% more distinctions. This reflects a rigorous recruitment process and the structured LABC mentoring programme that helps senior surveyors to deliver timely, targeted support. Students spend 20% of their working time consolidating lecture learning and practical experience, backed by the support of LABC’s award-winning team. Some local authorities outside the LABC / MHCLG funding model have also adopted an additional study day to help their trainees excel.
Our partnerships with the National Fire Chiefs Council (NFCC) and the University of Wolverhampton remain strong. The NFCC currently has 1,993 Fire Service individuals using the LABC / NFCC Virtual Learning Environment, and 135 building control apprentices studied with the University of Wolverhampton in 2024-25.
In April 2024 LABC launched myLABC a bespoke CPD and portfolio platform for members. The platform helps users with new or existing RBI competency registrations through workshops, quizzes, learning modules and provides a technical support, management and QMS hub. To date we have 1,284 licensed users, with 63% of local authorities signing up. There have been over 7000 workshop bookings with an average attendance rate of 73%. Feedback is positive whereby 91% of attendees reported the workshops met or exceeded their expectations, and 86% reported being able to apply the learning immediately.
LABC is firmly established as a leader in building regulation competency training for building control, construction professionals, and the fire and rescue service. Recent initiatives include the release of brochures aimed at Tier 1 contractors, CPS installers, and SME builders, with many courses linked to CITB funding through LABC’s status as a CITB Approved Training Organisation (ATO). Looking ahead, LABC has also signed an agreement to provide the Scottish Building Standards Hub with 117 CPD modules in 2025–26.
In response to the Grenfell Inquiry, we’re launching a new Fire Engineering Principles CPD course and qualification in November 2025. Delivered by Fire Engineering experts and facilitated by LABC, it will build foundational fire engineering knowledge needed to critically assess fire strategies. It is designed for experienced building inspectors, principal contractors, principal designers, Tier 1 contractors, the fire and rescue service, structural engineers and other construction professionals with responsibility for assessing and ensuring fire safety in buildings.
LABC will introduce a plan assessment coaching programme in January 2026 which will walk learners through a plan check for building types 2A, 2B,2D and 2F, with the F series bridging those who complete the Level 5 Diploma to the Level 6 Certificates in Fire Safety and Regulatory Enforcement. With desk-based coaching, LABC aims to ease pressure on local authorities so that their mentors can focus more on site-based experience.
Member Services
2024 saw the introduction of the registration of the building control profession. This required all building control professionals to prove their competence. LABC’s subsidiary company, the Building Safety Competence Foundation C.I.C achieved UKAS accreditation in May 2024 and accredited the competence of the 1000th person in early July 2024. Over 1400 people have taken validation assessments during 2024-25 which has meant a significant amount of work for the Standards and Technical Teams with a further four assessment dates to the end of 2026.
New legislation has meant that the LABC Quality Management System (QMS) used by over 90% of local authority building control teams in England and Wales has had to be completely revised. The introduction in April 2024 of the Building Safety Regulator oversight of the profession via Operational Standards Rules and associated monitoring arrangements has involved major changes and the need for increased support for the membership. Previously the QMS was one document covering England, Wales and LABC HQ. Given the diverging legislation between the nations and LABCs vastly changing role in supporting members, the team is in the process of creating three separate manuals. The English Quality Manual was launched in April 2025 with eleven revised process maps, new guidance on Conflicts of Interest, Whistleblowing and over 80 supporting templates and documents. The Welsh document is currently being developed following the same principles and once completed, will be registered with the BSI by July 2025. Work is ongoing to integrate member teams into the new system, with continued support provided to ensure the timely return of monitoring data to the BSR.
LABC Events
There were three conferences held in 2024-2025. The traditional Management and Policy Conference was held over a two day period with the attendance of 165 delegates and 13 exhibitors. Delegate ticket sales of £53,974.50 was lower than in previous years with exhibitor income of £17,560. This is believed to be due to the competency validation demands placed on the member profession at the time. LABC also held an Emerging Talents Conference for those with less than 3 years’ service in public service building control. There were 144 delegates, which included government funded LABC trainees. Delegate tickets generated an income of £4,956 and exhibitor bookings generated a further £1,300. A new conference was introduced in 2024 for mid-career surveyors which ran alongside the Emerging Talent conference and was attended by 104 delegates, generating a delegate ticket sale income of £30,835. In 2025, LABC will be restructuring its conference programme and running two conferences focusing on member work profiles. The Domestic and General Surveying Conference will take place in May 2025 and the Management and Specialist Surveying Conference will take place in autumn 2025. Finally, the annual Building Excellence Awards was attended by 921 delegates with the event breaking even. The Building Excellence Awards will return to the same venue in January 2026.
As a membership organisation with a not-for-profit ethos, LABC’s event programme has been developed to disseminate vital information and learning to both members and professionals within the industry, as well as recognising individual contributions to the industry in the awards programme. As far as possible, budgets are based on a breakeven basis for every event taking into consideration year-on-year increases in venue costs and the numbers of delegates attending.
Employee engagement and development
LABC continues to enjoy an exceptionally low staff turnover and as such we hold onto key employees. As a knowledge-based organisation, our people are our most valuable asset and as such we continue to ensure they are appropriately rewarded, engaged, trained, and supported. Staff are encouraged to develop key work skill sets and competencies.
Principal risk and uncertainties
The potential for failure of individual Building Control Teams to meet requirements under the new regulatory regime continues to be a risk. Whilst early indications demonstrate that the BSR is taking a proportionate and reasonable approach to local authority inspections, we are aware that lack of adequate resourcing in public service building control by local authorities has left some authorities in a vulnerable position. The impact of Registration of the profession has seen the loss of almost a third of the profession (over 1000 people) and so local authorities are under resourced, over stretched and suffering from neglect.
However, the creation of a new service for members, bringing together all available resources, associated legislation and guidance documentation, will allow members to self-assess their current position and seek help from LABC prior to inspection where they find gaps in performance.
Using funding from both English and Welsh Governments, LABC has supported public service building control with the introduction of 150 new surveyors over the past 2 years. Continued investment is imperative to preserve local authority building control; we continue to work with government officials and ministers to secure further funding to grow the programme.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 11.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of District Surveyors Association Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company's members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £407,036 (2024 - £403,650 profit).
District Surveyors Association Limited (“the company”) is a private company limited by guarantee incorporated in England and Wales. The registered office is 12 Tinworth Street, London, SE11 5AL.
The group consists of District Surveyors Association Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company District Surveyors Association Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised when the service or event has been delivered and is measured at the fair value of the consideration received or receivable for services provided, and is shown net of VAT and other sales related taxes. This includes income from events, conferences and training courses.
Income includes annual member fees, which are invoiced in advance and revenue is recognised on a straight-line basis as membership services are rendered evenly over the financial year.
Recognition of LABC Warranty commission income is based on monthly trading statements for policies sold.
Expenditures are recognised as they are incurred to generate income.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability, showing as deferred income.
Government grants are received to subsidise agreed expenditure. The income recognised matches the related costs.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).
During the year to 31 March 2024, the total compensation for qualifying services by key management personnel amounted to £1,189,107 (2024: £1,253,056).
The corporation tax rate increased to 25% from 1 April 2024.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 March 2025 are as follows:
Building Safety Competence Control CIC was exempted from the requirement to a statutory audit in the year by virtue of taking the s479A exemption from audit through issuance of a parental guarantee by District Surveyors Association Limited t/a LABC.
The entities above all share the same registered address as District Surveyors Association Limited t/a LABC.
Amounts owed by group undertakings are interest free, unsecured and repayable on demand.
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company has taken advantage of the exemption to disclose related party transactions with companies
that are wholly owned within the group. The balances outstanding at the period end are disclosed in the
debtors note.