Question to the Department for Business, Innovation, Science and Trade:

To ask His Majesty's Government what assessment they have made of the implications for investor confidence of the United Kingdom being one of the few major jurisdictions that does not retain a prudence based national generally accepted accounting practice alongside international financial reporting standards.

The Government and regulators continue to seek to maintain the confidence of investors and other stakeholders in UK Generally Accepted Accounting Practice standards and UK-adopted International Accounting Standards. The Government recognises the importance of comparability, consistency and reliability in UK accounting standards. Prudence is a key element in understanding what is reliable information.

On 7 September 2026, the ‘Modernising Corporate Reporting to support long term Economic Growth’ consultation was published. The Government welcomes responses on this and other issues with regard to the consultation’s financial reporting proposals, which focus on reports and accounts providing decision-useful information for investors and creditors.