Business & Technology
UK firms boost compliance spend as breaches persist
NAVEX has published UK research on the gap between compliance spending and risk outcomes at British businesses. The study found UK organisations report higher compliance maturity than global peers.
The survey found that 39% of UK organisations had suffered a cybersecurity or data privacy breach in the past two years, compared with 30% globally. UK respondents were also more likely to report a third-party ethics or compliance failure, at 23% versus 18% globally, and adverse media coverage linked to ethics and compliance, at 22% versus 20% globally.
The findings point to a disconnect between formal compliance structures and how decisions are made when commercial pressure rises. While 70% of UK respondents said their ethics and compliance programmes were at either the Managing or Optimizing level on a five-level maturity scale, those higher self-ratings did not consistently translate into fewer incidents.
UK businesses also appeared more willing than international counterparts to spend more on compliance. Some 43% expected compliance budgets to rise by at least 10%, compared with 32% globally.
Budget increases were more common among organisations that had already faced problems. Among UK organisations that reported no compliance issues over the past two years, 29% expected their budget to increase by at least 10%. That rose to 54% among organisations that had experienced two or more compliance issues, suggesting spending may follow incidents rather than prevent them.
Leadership gap
The survey also highlighted tension between leadership messaging and staff perceptions of corporate behaviour. Although 83% of respondents said senior leaders had encouraged compliance and ethical behaviour, 49% believed the C-suite viewed compliance as a “necessary evil” that inhibits business.
One-third of respondents said senior leaders had accepted greater compliance risk in pursuit of new business objectives or increased revenue. That suggests commercial targets can outweigh stated commitments to ethical and regulatory standards.
“UK organisations have not failed to invest in compliance. The challenge is making sure that investment changes how decisions are made when commercial pressure is at its highest. Policies, technology and governance structures may all appear strong on paper, but they will only reduce risk when compliance is treated as an essential part of business performance rather than an obstacle to it. Leaders must reinforce that message through their actions, particularly when difficult trade-offs arise,” said Erena Langley, Director of Regulatory Solutions at NAVEX.
Resource strain
Compliance teams are also facing broader demands without equivalent increases in staffing. The survey found that 91% of UK respondents expected investment or activity to increase in at least one area of their ethics and compliance programmes, including technology, training, analytics and cross-functional collaboration.
At the same time, 85% said at least one internal compliance challenge had grown over the past year. The most frequently cited issue was expanded responsibilities without extra resources, identified by 42% of respondents.
Only 20% of UK organisations expected to add compliance staff over the next 12 months. That points to a possible imbalance between growing workloads and the personnel available to manage them.
Speak-up culture
The report also found that formal whistleblowing and speak-up measures were widespread, but many organisations still struggled to convince employees that reporting concerns was safe. Some 96% of UK organisations said they had formal steps in place to encourage a speak-up culture, yet 76% still reported difficulties in creating one.
Among those facing challenges, 79% identified fear of retaliation or negative consequences as a barrier to reporting. The research suggested that while leadership messages and non-retaliation policies were common, fewer organisations tracked outcomes closely enough to build trust.
Only 38% said they monitored retaliation or case outcomes for senior leaders, while 34% said they tracked people who may be especially vulnerable to retaliation, including investigation witnesses.
“Fear of retaliation is a trust problem. Employees need to see that concerns are investigated properly, that action is taken and that people who speak up are protected in practice. Organisations must move beyond telling employees that it is safe to report misconduct and consistently demonstrate that this is true,” Langley said.
AI expansion
UK organisations also expect artificial intelligence to play a larger role in compliance work. The survey found that 45% believed AI would significantly transform their programmes over the next two to three years, while 91% said their compliance function was meaningfully involved in organisational decisions about AI use, compared with 78% globally.
Current uses are focused on training, monitoring and reporting, with respondents expecting wider adoption in policy management, third-party risk screening, investigations and speak-up systems. That expansion raises questions about governance, transparency and human oversight in functions that often involve sensitive employee and regulatory matters.
The UK findings were based on responses from 114 executives at British organisations, part of a global survey of 1,179 executives across a range of industries. Respondents included C-suite executives, senior managers, department heads and managers involved in ethics and compliance.
The results suggest UK companies have built more mature compliance frameworks on paper and are continuing to direct more money into them than many overseas peers. But the figures also show that higher spending, broader programmes and more formal policies have not removed exposure to cyber incidents, third-party failures and internal mistrust.
Only 20% of UK organisations expect to add compliance staff over the next 12 months, even as 91% expect investment or activity to increase in at least one part of their ethics and compliance programmes.
Gas network company SGN confirmed it had repaired three minor gas leaks and left the site on Monday, August 3, six days earlier than expected.
The leaks were discovered during excavation works last month and contributed to the pushing back of the road’s reopening date, yet again, to September 20.
The completion of the gas mains replacement marked a significant step forward in the wider Oxford Station improvement project, which was originally budgeted at £161 million but is now expected to cost at least £237 million.
The development prompted hopes that Botley Road, closed beneath the rail bridge since April 2023, could reopen earlier than planned.
However, Network Rail has moved to manage expectations, saying the project remains on course to meet its existing target date rather than finish ahead of schedule.
A Network Rail spokesperson said: “We’re pleased that SGN has completed its gas mains replacement work.
“While this is an important milestone, it doesn’t necessarily mean the overall project will finish early as some remaining work is dependent on access to the railway, which we have had to rearrange to enable the replacement of the gas main.
“Our focus remains on meeting our planned deadline of 20 September for reopening Botley Road to traffic.”
While the completion of the gas works removes one of the most recent obstacles facing the scheme, Network Rail says further work under the bridge and around the station is still needed before the route can reopen to traffic.
The club is currently struggling in the summer heat, and has launched a new fundraiser to keep its gymnasts safe.
The club, which is based at Grove House Barn near Warkworth in Banbury, launched the fundraiser so it could buy and install four air conditioning units to keep its space cool.
Currently, the club hopes to raise £7,000 through the appeal so it can buy four 10kW air conditioning units and cover all the installation costs.
So far, the club has raised £380.
Karl Wade, director of Wade Gymnastics, said the club has become “increasingly warm” during the summer months due to the rising temperatures.
READ MORE: Thames Water leakage targets are ‘not realistic’ says boss after pay rise
“Despite our best efforts to keep doorways and shutters open, it becomes very uncomfortable for gymnasts to play and train,” Mr Wade said.
He added: “The safety of our gymnasts and coaches is always our utmost priority.
“Unfortunately, the risk of having to close the business during these hot spells is increasing and we need to have more effective ways of keeping everyone cool.
“An air conditioning system would allow the business to stay open during those extreme hot conditions and continue to provide classes for everyone who attends.”
The gym currently delivers classes seven days a week for around 900 people, which range from toddlers to athletes competing at national level.
The gym club was founded more than four decades ago by Ruth Wade and, for the past 20 years it has been based at its current facility.
SOFIAH NICHOLE SALIVIO
News Editor
Solihull Council has appointed ICS.AI to deliver the first phase of an AI Transformation Discovery programme to examine how artificial intelligence could be used across several resident-facing services.
The 24-week programme will review opportunities in Adult Social Care, Children’s Services, Economy & Infrastructure, and Public Health. It is intended to help the council decide where AI could be used and where future spending should be directed.
In this first phase, ICS.AI will assess the council’s readiness for AI and identify use cases across the four service areas. The programme is expected to produce a prioritised shortlist of about 200 use cases, including 50 validated from a finance perspective, alongside a longer-term AI Transformation Roadmap.
The work is intended to create an evidence base before any wider implementation decisions are taken. Ethics, privacy, and safeguarding will be considered throughout the assessment process.
Discovery phase
ICS.AI will use its AI Target Operating Model framework to review Solihull’s current position across five dimensions before ranking opportunities. The outputs will be based on council-owned baseline data and reviewed by public sector specialists.
The approach reflects a broader pattern among local authorities exploring AI in service delivery while facing pressure to justify spending and manage risks around data use and public accountability. Councils have also been seeking clearer business cases before committing to larger technology programmes.
Solihull said the discovery exercise would support a measured approach to service modernisation. The authority wants to identify where AI could improve services for residents while also demonstrating value for money.
“We are committed to taking a well-considered and planned approach to modernising the services we provide. By building a strong evidence base for future decisions, this programme will help us understand where the greatest AI opportunities exist. We will then be able to prioritise those improvements that will deliver the greatest benefit for residents, while ensuring full value for the council,” said Councillor Dave Pinwell, Cabinet Portfolio Holder for Resources, Solihull Council.
Public sector focus
ICS.AI said the Solihull engagement builds on work it has carried out with more than 20 public sector organisations using its AI transformation and discovery assessments. Those organisations include Derby City Council.
The company focuses on AI projects for the public sector, where interest has increased as authorities look for ways to manage demand pressures in social care, public health, and other frontline services. At the same time, councils are under scrutiny to show that new technology investments are proportionate and supported by practical evidence.
Dwayne Johnson, Chief Local Government Officer at ICS.AI, said local authorities need stronger justification before committing funds. “Local authorities need confidence that every investment is backed by robust evidence and long-term value for residents. Solihull Council is taking the right approach by starting with a structured discovery programme that builds a clear understanding of priorities before decisions are made. By developing finance-validated business cases and a practical roadmap, the council can be more proactive in the decisions it makes,” he said.
The programme’s initial outputs are expected to give Solihull a ranked view of where AI could be applied across services, the level of organisational readiness, and which projects may warrant further consideration. This first phase is focused on identifying options rather than moving directly into deployment.
For local government leaders, that distinction is becoming increasingly important as councils test AI in areas that affect vulnerable residents and essential public services. In Solihull’s case, the work spans some of the authority’s most visible functions, including care services, children’s provision, public health activity, and parts of local infrastructure planning.
The council aims to use the findings to inform later investment decisions through finance-validated business cases and a practical roadmap for future priorities.
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