King's Speech promises a draft Audit Reform and Corporate Governance Bill to replace the FRC
The King's Speech on 17 July 2024 included a draft Audit Reform and Corporate Governance Bill. The new Government said it would replace the Financial Reporting Council with a statutory regulator, the Audit, Reporting and Governance Authority, with powers over financial reporting and accountability for directors of large companies.
The first King's Speech of the new Labour Government, on 17 July 2024, listed a draft Audit Reform and Corporate Governance Bill. The background briefing said reform was urgent after high-profile collapses such as Carillion.
What was proposed
- Replace the Financial Reporting Council (FRC) with a statutory regulator, the Audit, Reporting and Governance Authority (ARGA), with the powers it needs to tackle poor financial reporting.
- Greater scrutiny of large companies' accounts and more accountability for company directors.
- More transparency from large companies, and support for quality audit for all businesses that need it.
It was published as a draft bill, for consultation before a full bill.
Who would be affected
Directors of large and public interest entities, audit committees, and the company secretaries who support them.
Later developments
The draft bill was not published. In July 2025 the Government said the legislation would be delayed. In January 2026 the Department for Business and Trade said it did not intend to publish a draft bill in that parliamentary session, and the plan for ARGA was replaced by a proposed Corporate Reporting Authority, with the FRC still to be put on a statutory footing. See our January 2026 coverage.