Business Secretary Jonathan Reynolds has announced a major overhaul of corporate reporting rules designed to cut bureaucracy, lower costs and give businesses more time to focus on growth, investment and job creation.
The Government says the reforms will save firms more than £450 million a year, with further savings expected as ministers simplify reporting requirements, expand audit exemptions and move more company communications online.
Reynolds said:
“No-one goes into business to fill out forms.”
He added:
“We’re stripping back outdated bureaucracy and building a common-sense system fit for a 21st-century economy.”
The plans are particularly aimed at helping small and medium-sized businesses, which often have fewer staff and resources available to deal with complex reporting requirements.
Under the proposals, some medium-sized companies could qualify for audit exemptions, while the Government will review which firms should have to produce different types of financial and non-financial information. Ministers also want to simplify strategic reports, remuneration reporting and other corporate governance requirements.
The Government is also moving towards a digital-first reporting system, including making electronic communications with shareholders the default and exploring how artificial intelligence could help companies manage compliance more efficiently.
Reynolds said the changes would give businesses “breathing room” to invest in staff, equipment and expansion rather than spending unnecessary time and money on paperwork.
Plans already underway to scrap directors’ reports and expand exemptions from strategic reporting are expected to save businesses around £230 million annually.
The scale of the current reporting burden is significant. According to the Government, some companies’ annual reports and accounts now average around 98,000 words, while FTSE 100 annual reports average approximately 152,000 words.
The reforms form part of Labour’s wider commitment to reduce the administrative cost of regulation by 25 per cent, alongside planning reforms, support with energy costs for more than 10,000 businesses and investment in research and development.
The CBI welcomed the direction of travel. Its UK Competitiveness Director Jordan Cummins said corporate reporting remained important for investor confidence but could also be “a resource heavy process” for businesses.
The Quoted Companies Alliance also backed moves towards a simpler and more proportionate framework, while stressing the importance of maintaining confidence in company reporting.
A consultation on the latest proposals will open on 7 September and run until 30 November 2026.
For Labour, the overhaul is intended to reinforce its pro-business agenda by showing that regulation can remain robust while becoming more proportionate and easier to navigate.
The message from Reynolds is that reducing unnecessary paperwork is not simply an administrative exercise — it is part of a wider effort to cut the cost of doing business, improve productivity and support firms to grow and create jobs across the country.
