UK Opens Consultation on Simplifying Corporate Reporting Rules

The UK government has opened a consultation on reforms intended to reduce annual reporting burdens, expand audit exemptions for some medium-sized companies and make electronic communication with shareholders the default.

The proposals were announced on 6 September, with the formal consultation running from 7 September to 30 November 2026. The Department for Business, Innovation, Science and Trade said the package is designed to make company reporting more proportionate while preserving the information investors and other stakeholders need.

What the proposed reforms cover

The consultation includes a review of the intended audience for annual reports and accounts, the non-financial reporting requirements applied to private companies, and ways to simplify strategic and directors’ remuneration reports. Ministers are also considering clearer rules on distributable profits and capital maintenance.

Electronic communication with shareholders would become the default under the proposed model, reducing the routine use of printed documents. The government also plans to examine possible uses of artificial intelligence in reporting processes, although the final scope and safeguards would depend on the consultation and subsequent policy work.

Longer reports and compliance costs

Official figures cited by the government indicate that some annual reports now average about 98,000 words, rising to approximately 152,000 words among FTSE 100 companies. The consultation therefore addresses not only the number of required documents but also duplicated disclosures and the overall length of reports.

The government said previously announced measures are expected to save businesses more than £450 million a year. The new proposals could extend those savings, particularly for small and medium-sized companies that do not maintain large internal compliance teams.

No immediate change to current obligations

The announcement begins a policy consultation rather than introducing rules with immediate effect. Businesses, investors, professional bodies and other interested parties may submit responses until 30 November. Audit-exemption thresholds, digital communication arrangements and revised disclosure requirements will be determined after the responses are assessed and any necessary legislative steps are completed.

Consultation period: 7 September–30 November 2026

Full report in Turkish: Birleşik Krallık Kurumsal Raporlama Kurallarını Sadeleştirmeye Hazırlanıyor

Source: UK Department for Business, Innovation, Science and Trade