Business and Trade

The Economic Crime and Corporate Transparency Act 2023 included measures to reform how companies report information and what information they report when filing their annual accounts with Companies House.

The reforms include:

Requiring small companies and micro entities to file profit and loss accounts with Companies House as other companies do;

removing the option for companies to file abridged accounts;

a strengthened eligibility statement for all companies claiming an audit exemption;

the ability for the registrar to require all companies to file accounts via software—using inline extensible business reporting language (iXBRL) format; and

requiring component parts of the filed accounts and reports to all be filed together.

We also plan to bring forward secondary legislation to reduce the number of times a company can shorten its accounting reference period and introduce annotations to the register where a company has not complied with a notice regarding compliance of its accounts with the requirements of the Companies Act 2006.

ECCTA 2023 also included a requirement for small companies to file a directors’ report. However, as part of the Government’s modernising of corporate reporting programme, the Government announced that we will remove the requirement for any company to produce a directors’ report as part of their annual report and accounts. This change will therefore no longer apply.

The accounts reforms seek to improve the transparency, accuracy and reliability of data on the companies register, to inform business decisions, modernise practices in line with other countries, and tackle economic crime.

In June 2025, Companies House communicated that the reforms would be implemented in April 2027. This sparked some concern about the impact some of the reforms might have on businesses. As a result, we paused implementation to take time to engage with a range of stakeholders.

We have listened carefully to stakeholders’ concerns and after some consideration have taken the decision to proceed with the reforms, but with two changes.

First, we are proceeding with requiring small companies and micro-entities to file profit and loss accounts, but they will be able to opt out of having these published on the public register. We have taken this decision in response to concerns from the business and investment community around the commercial risks for smaller companies of disclosing this information, and the potential impact on investment opportunities.

Details of how smaller companies can opt out of publication will be confirmed in due course. Companies who wish to enjoy the benefits of publication, such as improved access to finance and enhanced transparency, can still do so.

Once implemented, the Employment Rights Act 2025 will raise the minimum floor of employment rights, raise living standards across the country and level the playing field for those businesses who are engaged in good practices. There are clear, evidence-based benefits of Government action through the Act. Not acting would mean a continuation of the current issues within the labour market: poor working conditions, proliferation of insecure work, growing inequalities, and fractious industrial relations.

Over 18 million employees will benefit from new protections, but it will be those who are lowest paid in the labour market, in sectors such as social care, hospitality and retail, that will benefit most. Our analysis, using UK and international evidence alongside economic modelling, finds that the Act will help boost employment, and improve job quality and productivity, while having a positive direct impact on economic growth.

Our latest delivery timelines demonstrate this Government’s commitment to delivering these reforms at pace, while giving businesses and workers time to get ready. April 2026 saw the delivery of significant changes that workers will now benefit from, including:

Strengthened rights to statutory sick pay, including expanding eligibility to up to 1.3 million of the most vulnerable workers who previously earned below the lower earnings limit and making it available from the first day of illness rather than the fourth day, meaning workers do not need to choose between working and getting better, improving workplace productivity and reducing the spread of infections in the workplace.

The Government are today announcing an ambitious new package to provide support for the UK’s high potential scale-ups to grow and stay in the UK.

Scale-ups contribute £2.2 trillion to the UK economy and employ 3.9 million people, despite making up just 0.8% of businesses, yet not enough scale into global leaders.

This Government have taken steps to address the scaling gap through recent measures including the modern industrial strategy, the plan for SMEs and the tax incentives and measures announced in 2025’s autumn Budget.

Now we are going even further, in a sustained cross-Government effort to close the scale-up gap and make the UK the first choice for our top scaling talent as we strive to produce the UK’s first trillion dollar firm.

For high growth, strategically important scale-ups with the potential to be the UK’s first trillion-dollar company, the UK Government will act as the strategic partner, offering a concierge service that will act quickly and decisively to help these companies tackle barriers to growth, whether that is accessing talent or markets—either overseas or HMG procurement—or regulatory barriers.

To strengthen the UK’s pipeline of high growth firms, I have launched an external tender for an expert third party provider to run an 18-month pilot from autumn 2026. As set out in the industrial strategy, I want to broker new relationships with businesses and use the expertise and experience of those partnerships to our full advantage. This will establish tangible and robust 12-month intensive support for scale-up founders that are facing critical tipping points in their growth journey. Companies will receive tailored action plans with the focus of support on networking, markets, investment and talent.

On 6 June 2025, the UK’s Trade Remedies Authority initiated a dumping investigation on hot-rolled steel plate of South Korean origin. During the investigation, the TRA recommended to the Secretary of State for Business and Trade that a provisional anti-dumping measure be applied for up to six months at duties of between 11.63% and 29.12%, dependent upon the South Korean exporter. This recommendation was made on the basis that the TRA provisionally determined that two domestic producers, Spartan Steel and Tata Steel UK, have been injured by dumping of hot-rolled steel plate of South Korean origin.

While the Secretary of State recognises the TRA’s provisional findings, he has also considered wider matters in the public interest. From 1 July 2026, the Government will implement a new steel trade measure by preserving vital steel production for critical national infrastructure and defence. The application of this measure may impact the need for a provisional anti-dumping measure, and this is a point that the TRA did not consider in its recommendation, which preceded the announcement of the new steel measure.

In this context, and mindful of the impact on the wider UK-South Korea trade relationship, the Secretary of State is satisfied that, in this unique situation, it is not in the public interest to apply the provisional measure.

The Secretary of State’s decision here does not affect any future decision he may take upon receipt of the TRA’s final recommendation regarding this investigation.

The Government will publish a public notice on 9 June 2026 to give effect to this decision

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When regulation works for small business, it works for all. I am committed to ensuring the Government provide the best assistance to those brave enough to start a business and it is only right our regulatory environment supports entrepreneurs. It is for that reason that I am today announcing the establishment of the small business regulatory taskforce. The taskforce has been commissioned by His Majesty’s Government to develop recommendations that will target reducing regulatory burdens faced by small and medium-sized enterprises, including microbusinesses. The taskforce will first meet on 11 June.

These recommendations will drive forwards our work to reduce the administrative burden of regulation by 25% and build on commitments in our small business plan to make life easier to start, run and grow your business in the UK. Small businesses are central to the UK economy. Yet far too often they face disproportionate regulatory and administrative burdens. Evidence gathered by the Department for Business and Trade’s business questionnaire shows that complexity, duplication and inconsistent guidance across regulators can make it harder for smaller firms to comply and grow. This Government are determined to reduce unnecessary burdens on business while maintaining vital protections for workers, consumers, the environment and the wider public interest. The taskforce will seek to improve the clarity and usability of regulation in a way that looks to support and increase innovation, productivity and growth across the SME economy

I will co-chair the taskforce, in my capacity as Minister for Small Business alongside Tina McKenzie, Chair of Policy and Advocacy at the Federation of Small Businesses. It will bring together voices from business, industry and Government to identify evidence-based reforms that can improve the operation, clarity and proportionality of regulation for SMEs. The composition of the taskforce reflects a broad cross-section of the SME economy and will consult on members’ views and suggestions throughout the duration of the process. In doing so, it will build on the success of the 2025 licensing taskforce and help apply the lessons learnt from the John Fingleton-led nuclear regulatory review across the wider economy. The taskforce’s work is expected to include consideration of issues such as modernising regulatory submissions, embedding more SME-friendly approaches to guidance, exploring regulatory passporting initiatives, reviewing the impact of enforcement across regulators and local authorities as well as examining what more Government can do to support SMEs with the capability, resource and technology needed for compliance.