Thank you for contacting me about reforming the legal framework governing businesses in the UK. 

This is an important issue, and I agree that more can be done to help British businesses grow and prosper. Good businesses provide both prosperity and security for individuals and families and the communities they are part of. In contrast, when companies fail, it affects jobs and lives across the UK, as we saw with the collapse of businesses such as BHS, with the loss of 11,000 jobs, and Carillion, which left 3,000 unpaid contractors, £1 billion of debt and a pension deficit of at least £500 million. 

I therefore believe we need a framework for businesses that will help to minimise the impact of such failures, while supporting innovation, investment and high-quality jobs. One aspect of this is improving corporate governance and audit reform. Robust and rigorous scrutiny of large companies by auditors and greater transparency around their finances is essential to ensuring that investors, employees and consumers have an accurate picture of the health of businesses, helping to deliver a more secure economy. 

That is why I fully welcome our newly elected Labour Government’s announcement that we intend to introduce an Audit Reform and Corporate Governance Bill. It is crucial that investors and the public have access to truthful reporting from our most important businesses on their finances and related issues. This draft Bill will help enable trust in major companies and underpin economic growth. I am pleased that the proposed Bill will enable a revamped regulator to uphold standards and independent scrutiny of companies’ accounts, as well as accountability for company directors. It will also support long-term investment in UK companies and reduce the harm that financial reporting errors can do to businesses and communities throughout the country. 

I also believe having a proper industrial strategy will play a crucial role. I welcome too that the newly elected UK Labour Government has committed to end short-term economic policymaking with the establishment of an Industrial Strategy Council, founded in legislation, to provide expert advice. In addition, I am committed to action on public procurement that will ensure the Government contracts value organisations that create local jobs, skills and wealth, and adhere to high standards when it comes to workers’ rights, environmental standards and tax compliance.