UK Scraps Audit & Corporate Governance Reform Bill

The UK government has dropped plans for the Audit and Corporate Governance Reform Bill, concluding that the proposals would impose added costs on large companies. The decision was confirmed in a Department for Business and Trade announcement linked to measures aimed at reducing regulation and supporting investment in technology sectors.

The bill had proposed a revised definition of public interest entities, stronger accountability requirements for company directors, and the creation of a regulator with expanded powers. Further details were outlined in a letter from Small Business Minister Blair McDougall to the Parliamentary Business and Trade Committee. He said the government’s priority was to support economic growth and reduce administrative burdens, and that it would not proceed with measures that increased compliance costs. The government plans to focus instead on simplifying and updating corporate reporting requirements.

McDougall also referred to changes in audit regulation since the collapse of Carillion eight years ago. Professional bodies said the decision leaves questions around the future powers of the Financial Reporting Council.