Audit, Reporting and Governance Authority

Debate between Lord Pitkeathley of Camden Town and Lord Leong

Monday 31st March 2025 Lords Chamber

[Lord Leong (Lab)]

The noble Baroness makes a very good point. It is important that, whichever regulator we have, it is effective. Currently, the regulator has some weaknesses in its powers; the new regulator will, I hope, address those weaknesses. It is important that, when anyone looks at the accounts, investors have confidence to make investment decisions. That will drive business and growth.

[Lord Pitkeathley of Camden Town (Lab)]

My Lords, late last year, the chief executive of the Financial Reporting Council said of the transition to an audit, reporting and governance authority:

“It’s long overdue. It’s the right thing to do. It may sound a bit boring and bureaucratic, but it’s really important”.


Given the highly technical nature of this area, publishing a draft Bill makes sense. However, can the Minister confirm that this process is being used for genuine scrutiny and not to kick proposals into the long grass?

[Lord Leong (Lab)]

I thank my noble friend for his question. It is true that these reforms are long overdue, which is why this Government are working on them at pace. My noble friend will understand that I cannot pre-empt any pre-legislative scrutiny process for either the content of the draft Bill or the timing of its introduction. However, we are fully committed to delivering these changes and doing so in a way that ensures that parliamentarians, businesses and wider stakeholders are part of the journey.