Through the non-financial reporting review, the government is looking at what opportunities exist to refresh and rationalise current reporting requirements so that the UK’s non-financial reporting framework is fit for purpose and delivers decision-useful information to the market.

The review will largely consider the following:

• costs and benefits of current non-financial reporting requirements and opportunities to streamline existing reporting requirements. This will also consider the degree to which stakeholders believe that requirements within company law align with regulatory rules set by other regulators such as the Financial Conduct Authority (FCA) and Prudential Regulatory Authority (PRA);
• thresholds and definitions used to determine whether companies and LLPs must comply with certain requirements. As part of considering size thresholds, the government will also review whether the existing micro-entity, small and medium reporting thresholds are set at appropriate levels; and
• the future of the UK’s non-financial reporting framework. This will include views on the best way to integrate standards introduced by the International Sustainability Standards Board (ISSB) into the UK’s reporting framework, as well as the potential role for other reporting initiatives that are designed with sustainability-related goals in mind.

The call for evidence is open until 16 August 2023.

For more information, see the consultation on the DBT page.