Source · Select Committees · Business and Trade Committee
Recommendation 10
10
Paragraph: 58
The Department’s commitment to working with other ministries to strengthen the Modern Slavery Act and...
Conclusion
The Department’s commitment to working with other ministries to strengthen the Modern Slavery Act and Transparency in Supply Chain legislation is welcome. However, there is little evidence that BEIS-specific issues around corporate governance and audit regulations are being given sufficient prominence in these cross-departmental discussions in Government.
Paragraph Reference:
58
Government Response
Not Addressed
HM Government
Not Addressed
The Government notes this conclusion. BEIS has worked with the Home Office to support the further development of the Section 54 (Transparency in Supply Chains provisions) in the Modern Slavery Act 2015, including its monitoring and enforcement. In 2019, the Government launched a public consultation seeking views on establishing a new single enforcement body for employment rights. BEIS will work with the Home Office to consider enforcement of the Transparency in Supply Chains legislation in line with the development of the single enforcement body for employment rights and issue a further update in due course. As indicated in the response to recommendation 6, the Government has brought forward plans to strengthen corporate governance and accountability. On 18 March 2021 the Government published a White Paper consultation on “Restoring trust in audit and corporate governance”, which sets out ambitious reforms to strengthen the UK’s audit, company reporting and corporate governance framework. The consultation runs until 8 July 2021. Previously, in September 2020, the Government also published plans for a radical overhaul of the powers of Companies House and related measures to improve corporate transparency. These include plans to verify the identities of company directors and beneficial owners. The Government will legislate for these measures when Parliamentary time allows, and also remains committed to introducing a Register of Overseas Entities which would record the beneficial owners of foreign companies owning UK property. There have been a number of cross-departmental discussions regarding how these measures could support action on human rights abuses. Verifying the identities of directors and beneficial owners of UK companies will help investigators to identify where those suspected of human rights abuses might have economic interests in the UK. The Register of Overseas Entities could also help investigators establish any links between UK property assets held by such companies and individuals.