As Parliament returned from summer recess last week, 66 influential MPs and Lords from eight political parties and all corners of the UK have signed a letter to the Prime Minister, urging the Government to prioritise the long-overdue Audit Reform and Corporate Governance Bill —promised in last year’s King’s Speech but still not published.
The Chartered Institute of Internal Auditors coordinated the cross-party letter after it emerged in July that the draft Bill had been delayed yet again.
The letter reads: “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are very disappointed that, despite this early promise, it has been announced that it has once again stalled and will not be published for pre-legislative scrutiny during this session.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.”
Leave a Comment