FRC to request contribution from small businesses

The Financial Reporting Council (FRC) is set to propose a new levy system whereby the UK business community contributes more to the organisation's funding.

Currently funded by the accountancy profession, business sector and the government, the FRC is planning to increase the non-statutory levy from the business community by extending its scope to include smaller firms.

At present, only companies listed on the main market of the London Stock Exchange make an FRC contribution, but under the new system businesses on the AIM and PLUS exchanges will also be made subject to the levy, Accountingweb.co.uk reports.

FRC chief executive Paul Boyle justified the inclusion of less-established companies by stating: "They derive significant benefits from our work and should therefore contribute to our costs."

According to the website, the extension of the levy means that the business community's contribution to the FRC's operating costs for 2008-09 is expected to total £4.2 million.

The FRC describes itself as "the UK's independent regulator responsible for promoting confidence in corporate reporting and governance".