The Financial Reporting Council (FRC) will increase its funding to £62m to help fund the new regulator, the Audit, Reporting and Governance Authority (ARGA), due to be established in 2024
The three-year plan for 2023-26 involves significant increases in funding and staff to allow the FRC to transform into ARGA, once parliamentary approval of legislation is agreed.
The annual budget will be £62.2m, up 10.5% from £56.3m (2022/23), while funding for the UK Endorsement Board (UKEB) will increase to £4.1m from £3.5m.
The combined FRC/UKEB budget will increase by 10.9% to £66.3m (2022/23: £59.8m).
The FRC also plans to increase its headcount by 9.7% to 533 by March 2024 from 486 in 2023 – slightly lower than it had anticipated in the 2023-24 plan, reflected largely by the delay to ARGA.
Staffing costs will continue to rise, following the regulator’s drive to recruit more experts to work across the supervisory and enforcement activities. Staff costs will increase from £41.1m in 2022/23 to £45.9m in 2023/24.
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