Tackling corporate reporting burdens
A review of the government's proposals.
21 Sep 2026
The government recently launched an overhaul of corporate governance reporting that it hopes will save UK businesses more than £450 million per year. As part of the changes, the government will replace paperwork reporting with digital systems and explore how AI can further drive efficiency.
Simpler rules outlined in a new consultation will make British businesses more attractive to investors, the government said. In turn this will help to drive the creation of good jobs that make the country better off. Here, we consider government's proposals.
Outlining the government's recommendations
The consultation explores how reporting obligations could be simplified and made more proportionate by clarifying the purpose of corporate reporting; rationalising thresholds and exemptions; and reducing unnecessary or duplicative requirements.
The government's proposals include changes to the corporate reporting framework, corporate governance, financial reporting and remuneration reporting.
Altering the corporate reporting framework
According to the government, the proposed changes will 'clarify the purpose of corporate reporting by reaffirming that annual reports should primarily provide information for both investors and creditors that aid them in making decisions'.
They will also reform financial reporting requirements by moving many detailed reporting obligations from the Companies Act 2006 into accounting standards, creating a more coherent and adaptable framework.
The government intends to reduce corporate governance reporting burdens, potentially lowering the number of companies required to make governance disclosures and simplifying existing requirements.
Changes to annual reports
In its consultation document, the government stated that 'the UK's laws and frameworks have weaknesses that need to be addressed'. It said that the purpose of the annual report and accounts 'has become obscured' and its effectiveness reduced.
In its consultation document, the government outlined its intention to refocus annual reports on financially material information. It proposed that the main purpose of annual reports is to supply useful information for investors and creditors to base decisions on.
Another of the government's stated aims is to simplify company size thresholds and exemptions. Reporting requirements should reflect company size, ownership structure and economic impact, ensuring costs are justified by benefits, it said.
An overhaul of remuneration reporting
The consultation suggests keeping core elements of directors' remuneration reporting. This includes the single total figure of remuneration for each director; the remuneration committee chair's annual statement; disclosure of how performance conditions have been applied; forward-looking remuneration policy information; and the ten-year CEO pay and total shareholder return (TSR) performance graph.
Several disclosures could be removed that the government believes create reporting volume without providing sufficient value. These include CEO-to-employee pay ratio disclosures; relative spend on pay disclosures; workforce engagement disclosures linked to remuneration; and certain disclosures relating to remuneration committee activities and advisers.
Staying compliant with corporate reporting requirements is vital as it helps businesses maintain transparency, demonstrate good governance and meet their legal obligations. We'll keep you updated on the outcome of the government's consultation.
