Written questions by Bacon.

What steps the Department is taking to improve the requirements for annual reporting for small and mid-sized quoted companies.

The Government is reviewing non-financial reporting requirements and company size thresholds to simplify, streamline and reduce reporting obligations for all companies. Small quoted companies will benefit from the removal of unnecessary and duplicative reporting. However the Government believes that small quoted companies should provide enhanced transparency compared to similar sized private companies. Accountability and transparency are necessary to protect investors and maintain trust in financial markets.

What steps the Department is taking to ensure audit requirements are (a) accessible and (b) affordable for small and mid-sized quoted companies.

Audit standards for UK companies are adopted and set by the Financial Reporting Council (FRC), with reference to internationally-agreed standards. The law sets other requirements, such as which companies require audit.The Government will publish a draft Audit Reform and Corporate Governance Bill. The Bill will include provisions for transitioning the FRC into a new regulator, the Audit, Reporting and Governance Authority (ARGA), with powers to monitor and address the resilience of the audit market. The Government is also considering the case for deregulatory changes to the audit of public interest entities (PIEs), which include all listed companies.

What steps his Department is taking to help support the growth of small and medium-sized enterprises.

Small businesses are the beating heart of our communities. The Government will boost small business growth and productivity by delivering upon the commitments within Labour’s Plan for Small Business published prior to the election.On 19th September 2024, we announced new measures to tackle the scourge of late payments and long payment terms. We are providing access to the support and finance needed to scale-up and to break into new markets. We are also transforming the apprenticeships levy into a new growth and skills levy, offering greater flexibility for learners and employers, including shorter duration apprenticeships in targeted sectors.

If he will make an estimate of the proportion of economic growth that will be created by small and medium-sized enterprises in the next five years.

Small and Medium Enterprises make a significant contribution to economic growth, they currently represent 99.9% of the UK’s business population, account for 16.7 million jobs (61% of total UK employment), and generate £2.4 trillion in annual turnover (53% of the total) for the UK economy. We continue to expect Small and Medium Sized enterprises to significantly contribute to UK growth.