The business and trade committee refused to endorse former Virgin Money chief Dame Jayne-Anne Gadhia to chair the Financial Reporting Council, the first time it withheld approval under post‑Carillion reforms.

Business secretary Peter Kyle named Gadhia as his preferred candidate, but the committee criticised her for declining to set out views on key audit reform issues, including measures to increase competition and placing the regulator on a statutory footing.

Previous chairs Sir Jan du Plessis and Simon Dingemans received explicit endorsement; the committee praised Gadhia’s integrity and competence but omitted endorsement because she would not take positions on unresolved reforms.

The FRC has lacked powers since legislation to replace it was scrapped in January, leaving the next chair to navigate stalled audit reform after the collapses of BHS and Carillion.