The Financial Reporting Council (FRC) has set out a draft plan and budget for 2013/14, increasing the annual budget and raising the levy rates from preparers and the accountancy profession.

The proposed budget for 2013/14 is £24.5m, up 7.9%on year-end forecasts for 2012/13. Core operating costs are increased to £14.3m, up from year-end forecasts of £12.9m for 2012/13.

The big increase will be the annual fees for preparers which rises to £8.9m from the budgeted £7.2m in 2012/13. Likewise for firms, there will be an increase in annual levy to £4.9m, up from the current £4.6m.

The proposed increase in the budget for the core operating costs is required to strengthen the effectiveness of FRC's conduct activities relating to corporate governance, reporting and auditing.

The need to raise annual levies also reflects the reduction in government funding since 2011 when the annual subsidy was reduced from £1.2m to £500,000.

The draft plan identifies six priority projects to deliver more effective regulation, better corporate reporting, better audit quality and value, effective actuarial oversight and better links to the economic and market context.

The additional funding will strengthen our ability to respond to international demands, to scrutinise emerging issues and to conduct research into the economic and business environment in which we operate.

Chief executive of the FRC, Stephen Haddrill, said: 'FRC reform has produced a more effective and streamlined organisation, able to deliver more for its stakeholders. This plan sets out what the FRC wants to achieve and the resources it needs to do it: more effective regulation, a stronger voice in Europe and internationally, along with good value for money for levy payers.'

However, there is a degree of competition between the various global and national accounting standards and regulatory bodies in the race to regulate, which could create a conflict of interests and even duplicate work.

'It was thought by many that some standard setting costs and regulations would be dealt with globally, but the FRC has an intense desire to come up with its own reports on issues (eg, disclosure framework),' said Julia Penny, audit and accounting specialist at CCH.

FRC is stronly committed to strengthening its role from a global perspective.

Mridul Hegde, executive director of strategy at the FRC said: 'We think we can do more and achieve more. In particular, we want to focus on influencing the international debates on auditing and international reporting standards.'

The draft plan and budget are open for consultation until 28 March 2013.