PolicyLens

Methodology note

Scrap mandatory ESG reporting: calculation note

Scenario assumptions behind the Scrap mandatory ESG reporting estimate. The figures are illustrative and exclude unrelated Conservative pledges.

View main policy page: Scrap mandatory ESG reporting

Central fiscal result

GBP 0.0bn - Net fiscal impact in 2028-29

Low case: -GBP 0.1bn. High case: +GBP 0.5bn. Positive numbers are fiscal costs or borrowing pressure. Negative numbers are Exchequer savings or receipts.

Scenario and baseline

  • Model repeal of selected mandatory ESG and diversity reporting by 2028-29.
  • Central fiscal effect is zero.
  • Baseline includes climate-related disclosures and FCA SDR rules.
  • Private compliance savings are not Exchequer savings.

Affected population

  • Affected population is in-scope companies and financial firms.
  • Direct gains are lower reporting and assurance costs.
  • Indirect exposure includes investors, lenders and consumers.
  • International reporting obligations may remain.

Gross impact

  • Central public fiscal effect: GBP 0.0bn.
  • Regulator savings and transition costs broadly offset.
  • Private compliance savings are not included in fiscal estimate.
  • High case assumes lost information raises public-risk costs.

Fiscal build-up, central case

  • Regulator administration savings: -GBP 0.1bn
  • Transition and guidance costs: +GBP 0.1bn
  • Tax receipt effects: GBP 0.0bn
  • Public-risk information costs: GBP 0.0bn

Central net impact: GBP 0.0bn in 2028-29.

Behaviour and pass-through

  • Low case assumes duplication is removed efficiently.
  • Central case assumes small public savings and small costs.
  • High case assumes information loss raises later regulatory and risk costs.
  • Many firms still report to investors or overseas regulators.
  • Consumer price effects are likely minimal.

Phasing

  • 2026-27: GBP 0.0bn. Preparation or partial implementation.
  • 2027-28: GBP 0.0bn. Main ramp-up year.
  • 2028-29: GBP 0.0bn. Target-year central estimate.
  • 2029-30: GBP 0.0bn. Continuation at steady-state assumptions.

Main source groups

  • con-plan-2026: Conservative live policy page; used to identify current pledge wording.
  • climate-disclosure-2022: Climate disclosure guidance; large-company reporting baseline.
  • fca-sdr-2026: FCA SDR regime; financial-services disclosure baseline.
  • obr-efo-mar-2026: OBR March 2026 forecast; fiscal and macro baseline.
  • dechezlepretre-sato-2017: Regulation and competitiveness; informs behavioural and incidence assumptions.
  • goulder-parry-2008: Environmental policy design; informs behavioural and incidence assumptions.