Audit, Reporting and Governance Authority

Lord Lemos Excerpts

Monday 31st March 2025 Lords Chamber

[Lord Leong (Lab)]

The noble Lord makes a very good point. At the end of the day, we would like any regulator to perform the work but not to overburden SMEs or, for that matter, to stifle growth, which is the Government’s number one priority.

[Lord Lemos (Lab)]

My Lords, the creation of a new auditing authority was first mooted in 2018 under the last Government. Despite numerous statements that this is a priority, firm after firm has collapsed, raising new concerns about the adequacy of the UK’s auditing arrangements. While it is of course important that we get this right, can my noble friend reassure your Lordships’ House that we will not have to wait another seven years before we make progress?

[Lord Leong (Lab)]

My Lords, my noble friend is right to point out the length of time that it has taken to reach this point. Let us not forget that the collapse of BHS and Carillion caused havoc in the country. It was a wake-up call, when 11,000 people lost their jobs in BHS and 30,000 people lost their jobs in Carillion. Improving auditing standards is an important step, not least to better inform lending and investment decisions. I hope my noble friend will take heart from the fact that this was included in our manifesto commitment and in our first King’s Speech. We look forward to the proposals receiving pre-legislative scrutiny in due course.