The UK Government has confirmed it will not proceed with the Audit and Corporate Governance Reform Bill, stepping back from plans that would have significantly reshaped the audit and reporting landscape.
The proposed reforms, first developed in response to high-profile corporate failures, included the creation of a new regulator and tougher oversight of audit and corporate governance. The decision to pause the legislation reflects a wider policy shift towards reducing regulatory burden and supporting economic growth.
For SME owners and business leaders, this means there is no immediate change to audit thresholds, reporting obligations, or governance requirements. However, this is not a signal to relax standards. Expectations around financial transparency, strong controls, and good governance remain firmly in place, particularly when dealing with lenders, investors, regulators, and potential buyers.
For professional advisers, including accountants and lawyers, the current regulatory framework continues. While large-scale reform is on hold, scrutiny of audit quality and governance practices remains a priority, and targeted changes may still emerge over time.
In an environment where policy direction can change quickly, having access to clear, practical advice is essential.
With local experts on the ground across the UK, backed by a national group and global capability, we help SMEs stay compliant, competitive and confident, no matter what policy changes come next.
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If you would like to understand what this announcement means for your business, or how to strengthen your financial and governance framework, our advisers are here to support you.
