The UK government has opened a consultation on simplifying corporate reporting, with proposals covering audit exemptions, financial and non-financial disclosures, governance, remuneration and digital communications. The consultation closes on 30 November 2026; the proposals are not yet final rules.
What is the government reviewing?
The review asks whether the reporting framework can be made clearer and more proportionate while continuing to provide useful information to investors, creditors and other users. It examines the purpose of annual reporting, company-size thresholds, exemptions and duplication across existing requirements.
Could audit requirements change?
One proposal would allow some medium-sized companies to qualify for audit exemption. The consultation also considers how thresholds and exemption frameworks interact. Any eventual change would depend on the government’s response and the necessary legislation, so companies should continue following the law currently in force.
What other reports are in scope?
The document covers financial reporting, the strategic report, non-financial information, corporate-governance statements and remuneration reporting. It also asks about replacing parts of the current capital-maintenance and distributable-profits framework with a solvency-based approach.
What role could digital reporting play?
The government wants greater use of digital communications and more coherent reporting requirements. It also raises the possibility of using technology, including AI, to reduce administrative work. The consultation does not establish a specific AI system or remove directors’ responsibility for accurate reporting.
What happens after 30 November?
The Department for Business will analyse responses before publishing its position. Some ideas may be revised, delayed or rejected. Businesses and advisers should therefore distinguish the consultation from rules already enacted. This article summarises the policy process and is not legal, accounting or investment advice.
Primary sources: the government’s Modernising corporate reporting consultation and its 6 September announcement.
Reporting basis: official information available on 26 September 2026. Illustrative image: photo by Taylor Vick on Unsplash.