Directors’ Report Requirement to Be Removed

The government has announced plans to remove the requirement for companies to include a directors’ report as part of their annual accounts.

Micro-entities are already exempted, however, it is intended that the requirement will be removed for all companies, approximately 440,000.

Medium-sized private companies will also be exempted from the requirement to prepare a strategic report as part of their annual report and accounts.

Wholly-owned subsidiaries will also be exempted from preparing a strategic report, provided their disclosures are included in the UK parent company’s annual report and accounts.

Estimates suggest that these changes could save UK businesses in the region of £230 million each year, and legislation to bring about these changes will be introduced as soon as possible.

See: https://www.icaew.com/insights/viewpoints-on-the-news/2025/oct-2025/directors-reports-to-be-scrapped-and-more-companies-exempt-from-strategic-reports