A group of 66 MPs and Lords, from eight different political parties, have sent a letter to UK prime minister Kier Starmer, calling on the Government to re-prioritise the Audit Reform and Corporate Governance Bill.
The Government recently announced it was pushing back the bill and consulting again on the reforms, to the dismay of many! The Chartered Institute of Internal Auditors has taken the lead on putting the bill back up the agenda, helping to co-ordinate the cross-party letter.
The letter said: “We welcomed the Government’s commitment in last July’s King’s Speech to publish the draft Audit Reform and Corporate Governance Bill, an important milestone following years of delay. However, we are very disappointed that, despite this early promise, it has been announced that it has once again stalled and will not be published for pre-legislative scrutiny during this session.
“The case for reform is now more pressing than ever. Strengthening audit and corporate governance is essential to laying the foundations for sustainable growth and long-term economic stability. Investors, the public, and other stakeholders must be able to rely on accurate, transparent reporting from our largest companies, covering both financial performance and other business-critical matters. This is fundamental to restoring trust and confidence in UK markets.
“We also need an audit regulator with real authority, one that can hold company directors and audit firms to account when failures occur. Without this, the system remains exposed and vulnerable, as the regulator lacks the legal powers it needs to do its job effectively.
“It is deeply concerning that over seven years have passed since the collapse of Carillion, yet no legislation has been brought forward, despite multiple independent reviews, a Government White Paper, and extensive public consultation. In the meantime, we have witnessed further high-profile corporate failures linked to weaknesses in audit and governance, including Patisserie Valerie, Bulb, Thomas Cook, Wilko, and ISG – making it clear that market oversight remains far from adequate. When companies collapse due to audit and governance failings, the consequences are devastating – impacting jobs, pensions, and smaller businesses across supply chains. This is the polar opposite of economic growth.
“In today’s increasingly volatile geopolitical and macroeconomic environment, a robust and effective audit and corporate governance framework is not a nice-to-have but a business necessity. The Audit Reform and Corporate Governance Bill enjoys strong cross-party support and represents a vital opportunity to legislate and regulate for growth, resilience, and accountability. “As we have seen with other important Bills, where there is political will, there is a way. We urge the Government to act now, bring forward this long-overdue legislation, and prioritise its passage through Parliament.”
The letter has been signed by amongst others our very own columnist Lord Sikka, along with Baroness Hodge of Barking (Labour), Josh Babarinde MP, Eastbourne (Liberal Democrat Spokesperson for Justice & Justice Committee), Siân Berry MP, Brighton Pavilion (Green), Ann Davies MP, Caerfyrddin (Welsh Affairs Committee) (Plaid Cymru), Graham Leadbitter MP, Moray West, Nairn & Strathspey (SNP), and Bob Blackman MP, Harrow East (Chair, Backbench Business Committee) (Conservative).
