The Government has withdrawn draft regulations after consultation with companies raised concerns about imposing additional reporting requirements.
Draft regulations published in July would have added certain additional corporate and company reporting requirements to large UK listed and private companies, including an annual resilience statement, distributable profits figure, material fraud statement and triennial audit and assurance policy statement.
However, it said that it remains committed to wider audit and corporate governance reform, including establishing a new Audit, Reporting and Governance Authority to replace the existing Financial Reporting Council. It promised: “We will bring forward legislation to deliver these reforms when Parliamentary time allows.”
Meanwhile, the Government said it will pursue options to reduce the burden of red tape elsewhere to ensure the UK is “one of the best places in the world to do business”.
It was felt this would have incurred additional costs for companies by requiring them to include additional layers of corporate information in their annual reports.
Since July, the Government has completed a call for evidence on existing non-financial reporting requirements, which has identified a strong appetite from businesses and investors for reform, including to simplify and streamline existing reporting.
The Business Secretary, Kemi Badenoch (pictured), has now decided to withdraw these regulations, and will be setting out options to reform the wider framework shortly to reduce the burden of red tape on businesses.
