Government overhaul of UK audit scheme aims to “restore business confidence”

The dominance of the UK’s ‘Big Four’ audit firms could be broken up under new government plans.

The government is launching a consultation on wide-ranging reforms in a bid to modernise the country’s audit and corporate governance regime.

The consultation will look at ways to compel large businesses to be more transparent about their finances in an attempt to help avoid company failures and safeguard British jobs.

Business Secretary Kwasi Kwarteng commented: “Restoring business confidence, but also people’s confidence in business, is crucial to repairing our economy and building back better from the pandemic.

“When big companies go bust, the effects are felt far and wide with job losses and the British taxpayer picking up the tab. It’s clear from large-scale collapses like Thomas Cook, Carillion and BHS that Britain’s audit regime needs to be modernised with a package of sensible, proportionate reforms.

“By restoring trust in our corporate governance regime and encouraging greater transparency, we will provide investors with clarity and certainty, cement the UK’s position as the best place in the world to do business, and protect jobs across the country.”