Bruce Cartwright

UK ministers are reportedly considering shelving the Audit Reform and Corporate Governance Bill promised in the King’s Speech last July out of concern it could negatively impact UK growth, according to FT.

However, ICAS, which welcomed the announcement of the bill last summer, has warned that a renewed “race to the bottom” could “jeopardise hard-won progress on corporate accountability”.

“We know how important economic growth is to this government and the country, but we strongly believe that the original objectives of the proposed Audit Reform and Corporate Governance Bill – promoting accountability and safeguarding trust – remain critical,” ICAS CEO Bruce Cartwright CA said.

“The arguments for this reform have already been made and won, and are widely recognised as being needed across the different parties, so we mustn’t lose sight of this.

“These reforms, initiated following the findings of the Kingman, CMA and Brydon reports, are essential if the UK is to maintain and protect its global reputation as a trusted and stable business environment.

“Regulation should not be viewed as the enemy of growth, but as a framework that supports it by providing the public and investors with greater confidence that the UK is a safe place to do business.”

He continued: “We urge the government not to dilute these reforms in a way that could lead to weaker oversight of board decision-making or compromise the UK’s high standards.

“Instead, we advocate for carefully crafted legislation that strikes the right balance between supporting growth and avoiding unnecessary burden on businesses, through proportionate, purposeful regulation that builds on what has already been achieved on a voluntary basis.

“We want to continue working with policymakers to make sure the final proposals achieve these vital objectives for the economy, businesses and society.”