Pen Pushing Gets The Push

Business and Trade Secretary, Jonathan Reynolds’, plans to simplify corporate reporting rules and cut the amount of paperwork SMEs face, have been welcomed.

Kate Shoesmith, Director of Policy and Insight at the British Chambers of Commerce told Fabrication & Glazing Eye: “Transparent, accurate reporting is an essential component to making the right investment decisions. We support the measures announced by Jonathan Reynolds that will simplify the current system and thereby reduce the potential for unforced errors and equally, reduce the reporting burden, particularly on SMEs.”

Audit and Corporate Governance Bill

Shoesmith added: “But as we said when the Audit and Corporate Governance Bill was first announced, businesses will want to be assured that this isn’t a stalking horse for over-regulation. If it is to work effectively, there must be clear, accountable enforcement mechanisms to weed out poor practice.

“Consideration also has to be given, early, into how this aligns with the EU directive on Corporate Sustainability Due Diligence, which also applies to many UK businesses. They do not need to be directly comparable but if we don’t have clarity, businesses of different sizes and sectors will have divergent and potentially unclear obligations to meet under these different regulatory regimes.”

Eye note:

The European Union CSDD directive gives companies with more than 5,000 employees worldwide or turnover over €1.5 billion, legal accountability for environmental and human rights transgressions by themselves of their supply chain, both within the EU and globally.

Freed from pen-pushing paperwork

The government has launched an overhaul of corporate reporting to save businesses more than £450 million per year, the Rt Hon Jonathan Reynolds MP claimed on Sunday 6 September.

He said paperwork reporting will be replaced with digital versions, while government explores how AI can further drive efficiencies.

Reynolds said: “Simpler rules will make British businesses more attractive to investors, driving the creation of good jobs that make the country better off.

“Corporate reporting keeps firms transparent and investors informed, yet today’s rules are too complex and burdensome for every business, from multinational companies to the removals firm down the road.

“Currently, the rules can see small chains of cafes and hotels or a window manufacturer having to spend thousands of pounds on reports, which is a nonsensical position for a business owner to be in when they’re busy trying to provide the best for their customers.”

Cost of reporting

The average annual report and accounts of some businesses now run to 98,000 words, longer than Tolkien’s The Hobbit.

For FTSE 100 companies, the average is even higher, at 152,000 words.

This is the inspiration for simpler reporting rules for 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.

Small and medium sized businesses often lack the resources to spend hours combing through paperwork. They 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.

Frustrating costs

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. 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 which are expected to save around £230 million annually, allowing more breathing space for businesses to invest in staff, equipment and expansion.”

Builders building

Reynolds added: “Ensuring regulation works for a modern economy is also an essential component of our Industrial Strategy, cutting red tape by 25% to help deliver infrastructure investment in the places that need it, planning reforms to let builders build, help with energy costs for over 10,000 businesses and R&D funding for Britain’s most innovative companies.

“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.”

Investor confidence

Jordan Cummins, UK Competitiveness Director, CBI, said: “Corporate reporting is a central piece of investor and market confidence, yet it’s also a resource heavy process for many businesses. Moves to modernise our reporting regime are welcome. Firms across the UK will look forward to helping government and regulators land on a future-proofed and agile framework.

Background

A consultation will open on 7 September 2026 and will close for responses on 30 November 2026.

Picture: The government plans to cut the amount of time and resources businesses spend on paperwork and reporting requirements.

Image courtesy of Flickr.