UK’s Financial Reporting Council (FRC) has issued its Plan and Budget for 2026–27, outlining priorities to “uphold high standards” in audit, corporate reporting and governance as it seeks to support economic growth.
The move marks the second year of the regulator’s three-year strategy for 2025–28.
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Overall, the FRC’s budget is set at £73.3m for 2026–27. The figure represents a 1.36% rise on the previous year.
According to a statement, the plan organises the year’s work around five main projects.
The central element of the plan is a new Audit Supervision Approach, which will reshape supervisory activity to be more risk-focused and proportionate approach across the audit market.
Another key initiative is the end-to-end enforcement review, aimed at introducing quicker and more efficient case handling through measures including an accelerated procedure and an early admissions process.
The regulator also added that this year represents the first full reporting cycle under provision 29 of the UK Corporate Governance Code.
At the same time, 2026-27 is the transition year for the revised UK Stewardship Code. The FRC noted that signatories to the code now manage £56.4trn ($74.7trn) in assets.
Alongside these headline projects, the regulator plans to maintain its focus on smaller entities. It will continue supporting SMEs and promote new approaches through its Innovation and Improvement Hub.
The plan also commits to creating a voluntary sustainability assurance provider registration framework.
The regulator’s staffing levels will stay unchanged, with headcount at 480.
FRC CEO Richard Moriarty said: “Our plan demonstrates how we will continue to support an environment for UK economic growth, competitiveness and responsible risk taking by enhancing investor and stakeholder confidence in the standards of corporate governance, reporting and audit.”
The regulator has reiterated that its three-year strategy and annual plan are not contingent on new legislation.
Recently, FRC announced that it will be introducing a revised model for supervising audit practitioners in the UK.
