Employers’ groups have broadly welcomed new legislation aimed at cutting red tape, part of which removes the requirement for listed companies to produce an operating and financial review (OFR).
The Legislative & Regulatory Reform Bill aims to make it quicker and easier for the government to tackle unnecessary or over-complicated regulation.
Under the laws, OFRs, which were to include a requirement to report on employee issues, are to be replaced by a Business Review as part of a Directors’ Report that should aim to provide a “balanced and comprehensive analysis of the business”.
The decision to scrap OFRs was branded disappointing and puzzling by senior HR professionals, but the overall aims of the legislation were backed by employers.
John Cridland, CBI deputy director-general, said: “Crucially, the Bill seeks to bring about a lasting culture change in official attitudes to risk and regulation, which is the real prize.”
David Frost, director-general of the British Chambers of Commerce, said the Bill could be a “major step forward” in the drive to reduce the burden of regulation on business.