FRC sets out year of delivery in Plan and Budget for 26/27

News types:

Published: 27 March 2026

The Financial Reporting Council (FRC) has today published its Plan and Budget for 2026-27, marking the second year of its three-year Strategy for 2025-28 and setting out an ambitious programme of work to uphold high standards in audit, corporate reporting and governance in support of UK economic growth.

The plan describes a year of focused delivery across five major projects, including a new Audit Supervision Approach, which will evolve the FRC's supervisory processes to promote a more proportionate and risk-based approach across the audit market, and the End-to-End Enforcement Review, which will introduce faster and more efficient enforcement processes — including an Accelerated Procedure and Early Admissions process — benefiting stakeholders.

This year also sees the first reporting cycle under provision 29 of the UK Corporate Governance Code and the transition year of the updated UK Stewardship Code — a code whose signatories now manage £56.4 trillion in assets, underlining the real-world significance of the standards the FRC sets. Alongside this, the FRC will continue to support SMEs, drive innovation through the Innovation and Improvement Hub, and establish a new voluntary Sustainability Assurance Provider Registration regime.

Internationally, the FRC's influence extends well beyond the UK. Building on its leadership of the IAASB's Going Concern Task Force and its central role in developing the global sustainability assurance standard ISSA 5000, the FRC will continue to ensure that UK priorities shape the future of corporate reporting and audit worldwide.

The overall budget is £73.3m, reflecting a below inflation increase of 1.36% on the previous year, demonstrating the FRC's continued commitment to value for money for levy payers. Headcount will once again remain flat at 480 (FTE: 462).

The plan was developed following public consultation between December 2025 and February 2026, with 15 responses representing Public Interest Entity audit market participants, audit firms and professional bodies. Respondents broadly welcomed the FRC's direction, its commitment making regulation clear, easy to navigate and more proportionate — particularly for SMEs and smaller audit firms — and its ambition to engage on Modernising Corporate Reporting and Sustainability Reporting.

The FRC has also confirmed that neither its three-year Strategy nor its annual plan was predicated on legislation. Following the government's announcement in January 2026 that it does not intend to bring forward an Audit Reform Bill but will push ahead with plans to place the FRC on a statutory footing, the FRC's purpose, strategic objectives and plans remain unchanged. The quality of audit regulation has been significantly enhanced since 2018 without legislation, and the FRC will continue working with government to improve the resilience, capacity and capability in the UK audit market, which supports stability and confidence in UK and attracts investment and capital.

"Our plan demonstrates how we will continue to support an environment for UK economic growth, competitiveness and responsible risk taking by enhancing investor and stakeholder confidence in the standards of corporate governance, reporting and audit. This is a key year of delivery for changes to the FRC’s regulatory approach to ensure it is match fit for the future – and another year of keeping headcount flat”

Richard Moriarty, FRC CEO,
Read the Plan and Budget and feedback statement