The Government has launched an overhaul of corporate reporting in bid to save businesses more than £450m a year, it has announced.
Described as “common sense changes,” paperwork reporting is to be replaced with digital versions, while the Government is also exploring how AI can further drive efficiencies.
Corporate reporting keeps firms transparent and investors informed, but today’s rules are too complex and burdensome for every business, it added, at whatever size.
Currently, the rules can see small chains having to spend thousands of pounds on reports, which the Government described as “a nonsensical position for a business owner to be in when they’re busy trying to provide the best for their customers.”
The Government said it is to tackle this burden with proposals for simpler reporting rules for small to medium enterprises (SMEs), exempting more businesses from audits, whilst also moving to a digital-first approach by making electronic communications to shareholders the default, ending reliance on piles of paperwork.
Circuit breaker
This is a key measure in the Prime Minister’s pledge for Government to be a circuit breaker, bringing down costs for business, “creating a better environment for firms to grow and invest and delivering good growth in every postcode.”
In particular, small and medium sized businesses who often lack the resources to spend hours combing through paperwork, will be taken out of certain forms of reporting entirely, freeing up more time to focus on growing their business and investing in their communities.
Business Secretary, Jonathan Reynolds, said: “No-one goes into business to fill out forms. For years, hardworking firms in this country have been weighed down by pen-pushing paperwork and frustrating costs, ticking boxes that do nothing to help them grow their business.
”We’re stripping back outdated bureaucracy and building a common-sense system…”
“We’re stripping back outdated bureaucracy and building a common-sense system fit for a 21st century economy. This will cut the cost of doing business, giving breathing room to bosses across the country, and free them up to focus on what they do best, creating jobs and growth.
“Plans are already underway to scrap director’s reports and expand exemptions from providing strategic reports, allowing more breathing space for businesses to invest in staff, equipment and expansion.”
Reynolds went on to suggest how new technologies could help business efficiency: “Working alongside the growing use of AI in business, this innovation will help transform how companies manage reporting and compliance, freeing up staff time currently spent on administrative tasks so it can be redirected towards innovation and growth.
“Reduced administrative costs mean businesses have more room to keep prices competitive, particularly for family firms and smaller businesses operating on tighter margins.”
A consultation will open on 7 September and will close for responses on 30 November 2026.
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