Question to the Home Office:

To ask Her Majesty's Government what plans they have to extend legislation relating to transparency in supply chains to businesses whose turnover is below the current threshold of £36 million; and what assessment they have made of the implications of such action for (1) compliance with the level playing field provisions of the UK–EU Trade and Cooperation Agreement, and (2) good regulatory practice within the UK.

The Modern Slavery Act 2015 (Transparency in Supply Chains) Regulations set out the amount of total turnover for the purposes of making a commercial organisation subject to the Act’s Transparency in Supply Chains Provisions. The Regulations set the turnover threshold for commercial organisations required to report at £36m.

Under section 4 of the Regulations, the Secretary of State is required to carry out a review of the Regulations every five years.

The Government published a review of the current turnover threshold as part of the Government response to the Transparency in Supply Chains consultation, published on 22 September 2020.The review concluded that the £36m threshold remains appropriate and proportionate and also noted that the Independent Review of the Modern Slavery Act did not advise lowering the existing threshold, and instead recommended that Government focus on improving compliance, quality of reporting and enforcement at the current threshold.

The new Government modern slavery registry, which is due to launch this year, will enable Government to more effectively drive compliance, as well as incentivising more transparent and detailed reporting, by providing a dedicated platform for investors, consumers and civil society to view and compare statements published under the Act.