The Institute of Chartered Accountants in England and Wales (ICAEW) has expressed strong concern over the government’s decision to delay the draft Audit Reform and Corporate Governance Bill, with Chief Executive Alan Vallance urging immediate action on reforms that have been “on the stocks for almost a decade.”
A decade-long wait
The delay announcement came through a letter from Justin Madders MP, Minister for Employment Rights, Competition and Markets, who cited the “volume of legislation before parliament” as the primary reason for postponing pre-legislative scrutiny.
While the minister acknowledged that the reforms are important and “will support long-term investment in UK companies,” Vallance argues this justification falls short given the extended timeline.
“An audit and corporate governance reform bill has been on the stocks for almost a decade, through successive governments and eight Secretaries of State for Business,” Vallance pointed out, highlighting the persistent nature of these reform efforts across multiple administrations.
Economic growth at stake
Vallance positioned the audit reforms as central to the government’s broader economic objectives, arguing they represent more than regulatory housekeeping. “These reforms are a big part of the government’s correct prioritisation of a growth mission designed to attract capital and investment, making the UK the best place to start and scale up a business,” he stated.
Acknowledging current challenges
While advocating for urgency, Vallance showed some understanding of the broader context facing the government. He acknowledged the current geopolitical and economic climate “and the government’s work on trade deals and the Industrial and Trade Strategies may have resulted in certain initiatives to be reprioritised.”
However, this recognition came with a clear message: the extended delay undermines the government’s own growth priorities and the reforms’ potential to strengthen the UK’s business environment.
The path forward
The government has indicated it will use the additional time to “continue to refine our proposals” through further stakeholder consultation. Minister Madders emphasised the government’s intention to “strike the right balance between oversight and assurance for investors, while not placing unnecessary additional burdens on business.”
For ICAEW and the broader professional services sector, the challenge now lies in maintaining momentum for reforms that have already weathered multiple political cycles.