Industry bodies Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS) have expressed concerns regarding the UK Government’s decision to delay the audit reform and corporate governance bill. 

Initially promised for the current parliamentary session, this delay has raised questions about the government’s commitment to reforming the audit sector. 

ICAS CEO Bruce Cartwright said: “We are frustrated by yet another delay in the progress of this bill, especially when so much of the work needed to bring it forward has already been done. Since 2018, the whole accountancy sector has got behind audit reform and corporate governance, as well as the need for greater accountability for decision making by boards and directors. There is also cross-party support in Westminster. 

“We know the government has a number of priorities, and it’s reassuring that it recognises the important work that has been done by the sector and the FRC since 2018. But a bill introducing legislative changes to reform audit and corporate governance is still very much needed and will play a vital role in achieving greater transparency and trust in the UK’s business landscape.”   

In a letter to the House of Commons Business and Trade Committee last week, Business Minister Justin Madders MP explained that the delay was due to a heavy parliamentary legislative schedule.  

This has prompted Committee Chair Liam Byrne MP to seek further clarification from the Minister.  

Byrne has asked which aspects of the proposed audit and corporate governance reform are considered “burdensome” to businesses and what feedback has been received from businesses on these reforms. 

Byrne also inquired about the timescale for introducing draft legislation and whether there will be adequate time for pre-legislative scrutiny.  

Meanwhile, ICAEW chief executive Alan Vallance said: “We absolutely recognise that in the first year of government, combined with a volatile geopolitical and economic climate, matters often have to be reprioritised.” 

He acknowledged the government’s focus on global trade deals, the Industrial Strategy, sector plans, and the nationalisation of British steel, noting that these initiatives demand attention. 

“But an audit and corporate governance reform bill has been on the stocks for almost a decade, through successive governments and eight Secretaries of State for Business. These reforms are a big part of the government’s correct prioritisation of a growth mission designed to attract capital and investment, making the UK the best place to start and scale up a business,” Vallance added.