It is being reported that Business Secretary Kwasi Kwarteng is looking to scrap plans to hold company directors personally liable for accounting failures, following a fierce business backlash.
Kwarteng is also expected to water down the overhaul of the audit industry and rules to improve the quality of accounts. It is the fear of creating more unnecessary red tape that seems to be the driving force here.
The climbdown won’t be welcomed by auditors, who have argued that the ultimate responsibility for corporate scandals should lie with the senior management of the companies involved.
Meanwhile, a Whitehall source said: “We need to strike the right balance between strengthening our corporate governance regime – which is in dire need of reform – and ensuring burdens on business are minimised as we recover from the pandemic.”
