The Department for Business, Innovation, Science and Trade (DBIST) has launched a major consultation Modernising Corporate Reporting to support long-term economic growth proposing a comprehensive overhaul of the corporate reporting framework for UK companies. Comments are requested by 30 November 2026. 

Overview

Reliable corporate reporting is central to maintaining trust in business and investor confidence, enabling investors, creditors and other stakeholders to make informed decisions about company performance, governance and future prospects. However, the government believes the effectiveness of the UK reporting framework has been weakened over the years by piecemeal additions to reporting requirements which have increased the volume and complexity of annual reports, a lack of clarity on the purpose of annual reports and accounts and legislation that has not kept pace with digital developments.  

The government has set out a wide range of ambitious and far-reaching proposals in what it described as a ‘once-in-a-generation’ opportunity to reset the UK’s corporate reporting framework. 

Principles underpinning the reform programme

In developing its proposals, the government has been guided by the following five overarching principles:


clarity of purpose – reaffirming that annual reports should primarily provide decision-useful information for investors and creditors
flexibility and trust – allowing companies greater freedom to tell their business story
simplicity and coherence – removing duplication and unnecessary complexity
proportionality – tailoring requirements according to company size and economic impact
fit for the future – ensuring reporting regulation keeps pace with technology and market developments.

Summary of key proposals

The government is seeking views on a wide range of potential reforms across the UK corporate reporting framework. Key matters under consideration include:


simplifying the scopes, thresholds and exemptions which determine what disclosures a company must provide in the annual report and accounts
creating a lighter regime for small and medium-sized enterprises (SMEs) including consulting on extending audit exemptions to certain medium-sized companies
creating a new ‘very large’ company threshold that could be applied to non-financial reporting requirements
removing the detailed financial reporting requirements from the Companies Act 2006 so that accounting standards would become the single source of detailed financial reporting obligations
the Companies Act 2006 would set out the high-level obligations for financial reporting and would identify which of four accounting standards should be used by a particular type of company
replacing the current distributable profits regime with a solvency-based approach to determining the legality of dividend payments
simplifying the strategic report requirements to provide companies with a core set of baseline narrative reporting requirements and empowering directors to make decisions on what they consider financially material information
new cyber risk management reporting requirements
reducing complexity in remuneration and corporate governance reporting including removal of requirements such as the CEO pay ratio and the advisory vote on the directors’ remuneration report
exploring greater digital communications including in relation to electronic shareholder communications, virtual AGMs, electronic tagging within annual reports and accounts and moving certain disclosures to digital platforms or websites
strengthening government oversight of future reporting requirements through a new central “Reporting Gateway” function


Further information

You can read the full consultation here.