Recovery in the Public Interest

The resurgence of COVID-19 infections across Europe has led to renewed lockdowns in the UK and beyond, bringing with it economic harm and uncertainty. Government support measures have quickly been extended to lessen the blow, but the ongoing COVID-19 pandemic is postponing the UK’s economic recovery.

Yet despite the prospect of a prolonged recovery, there is a sense the public interest should be at the heart of that recovery and a greener, more equitable economy should emerge from the crisis. This Radar includes many of the key upcoming regulatory developments that will contribute to higher levels of corporate transparency and accountability, and to greater value generation for a broader set of stakeholders.

• COVID-19: The sudden reintroduction of lockdowns across the UK has dashed hopes of life returning to normal for the foreseeable future. Government support mechanisms for businesses and employees that were soon to be wound down have been extended or refreshed. Despite economic growth bouncing back over the summer, UK GDP is expected to end the year below its pre-COVID level and unemployment is expected to continue to rise until the middle of 2021.
• Economic Recovery: Implementing climate-related disclosures will be a focus, as the UK works towards a greener recovery. The Government has signalled its intent to level up productivity between the regions of the UK, invest in infrastructure, reform the planning system and strengthen local government. The Government will shortly consult on wide-ranging reforms to the business ecosystem, including audit, corporate governance and reporting.
• Geopolitical: Time is rapidly running out for the UK and European Union to agree on a Free Trade Agreement. If a deal is not reached before the end of the transition period, a more complicated and challenging regulatory environment will result. A change in the US presidency will likely impact how multilateral relationships evolve in the future.

This quarter’s Regulatory Radar comes at a challenging and uncertain time for business leaders. You can access more of our EY UK Regulatory & Policy insights and research here.