The UK Government has indicated that it will legislate to strengthen the response to forced labour in supply chains, following sustained pressure from the Business and Trade Committee. The announcement follows the Committee’s calls for tougher safeguards, including mandatory human rights due diligence and restrictions on goods produced using forced labour.
What has the Government announced?
In an announcement published on 9 November 2026, the Business and Trade Committee said the Government had indicated that it would legislate for a mandatory due diligence regime to tackle forced labour in UK supply chains.
The Committee’s announcement followed its work on the UK’s trade relationship with the United States and its repeated calls for stronger protections against goods produced with exploitative labour. The Committee has argued that the UK should not become a destination for products that would be restricted in other markets because of concerns about forced labour.
The Government’s response to the Committee, published as the Fourth Special Report of Session 2026–27, confirms that reforms are being taken forward through the Immigration and Asylum Bill. It says the measures are intended to raise standards for businesses and public sector organisations in reporting and addressing exploitation in their supply chains.
What will the legislative reforms involve?
The Government’s response sets out a number of proposed changes to the existing Transparency in Supply Chains reporting requirements under the Modern Slavery Act 2015. These include:
- Requiring modern slavery statements to cover specified topics.
- Making publication of statements on the Modern Slavery Statement Registry mandatory.
- Clarifying deadlines for publication and approval requirements.
- Extending the reporting duty to public sector organisations.
- Introducing powers to impose financial penalties for non-compliance.
The response states that the proposed penalty powers could allow fines of up to £1 million or 1% of an organisation’s turnover or budget, whichever is higher.
The Government says these changes are intended to strengthen the existing reporting framework and ensure that organisations are expected not only to report on exploitation risks but also to take action in response to them. The precise operation of the reforms will depend on the legislation and any subsequent implementation arrangements.
What is the Responsible Business Conduct Review?
The Government’s response also refers to the Responsible Business Conduct Review, which examined the UK’s existing framework and considered alternative approaches to improving responsible business practices.
The review included consideration of mandatory human rights and environmental due diligence, as well as a possible ban on goods made with forced labour. The Government confirmed that the review had been completed and that it was considering the findings, but said it would set out its position in due course.
This distinction is important. The Government has described specific reporting reforms that it intends to progress through the Immigration and Asylum Bill. However, the response does not present a final decision on every option considered in the review, including a wider mandatory human rights and environmental due diligence framework or an import ban.
Why is the Committee calling for change?
The Committee has repeatedly argued that the UK’s protections against forced labour imports should be strengthened. Its concerns were reinforced by evidence heard during a parliamentary session with representatives of the fashion retailer Shein, where the company’s representative repeatedly declined to confirm whether its products contained cotton sourced from China, including the Xinjiang region.
The Committee said the hearing demonstrated the need for enforceable obligations requiring companies to identify and address exploitation in their supply chains. It has also called for stronger measures to prevent goods made with forced labour from being placed on the UK market.
In its report on the UK-US economic relationship, the Committee reiterated its recommendation that the Government introduce mandatory human rights due diligence legislation and an import ban on goods produced with forced labour, building on the Modern Slavery Act 2015.
The Government’s response also referred to US tariffs connected with forced labour, which took effect on 23 July 2026. It said the measures applied to 60 countries, including the UK, and covered 99% of US imports. The response noted that the UK had received a 10% tariff rate under the US measures.
What does this mean for businesses?
Businesses with complex supply chains may face more detailed reporting obligations if the proposed changes become law. Organisations will need to pay close attention to the topics that must be covered in modern slavery statements, publication deadlines, approval procedures and any requirements extended to public sector bodies.
The prospect of financial penalties also makes compliance a significant governance issue. Businesses may need to review how they identify supply-chain risks, document their due diligence activity, escalate concerns and demonstrate the steps taken to address suspected exploitation.
For legal practitioners advising businesses and public bodies, the developments raise issues around modern slavery reporting, supply-chain oversight, procurement, corporate governance and the potential consequences of non-compliance. The scope of any wider due diligence regime will become clearer when the Government publishes its final position on the Responsible Business Conduct Review and the relevant legislative provisions progress.
Frequently asked questions
Has the UK Government committed to new forced labour legislation?
The Government has indicated that it will legislate to strengthen supply-chain protections. Its response says that reforms to modern slavery reporting requirements are being taken forward through the Immigration and Asylum Bill.
What changes are proposed to modern slavery statements?
The proposed changes include mandatory topics, compulsory publication on the Modern Slavery Statement Registry, clearer deadlines and approval requirements, and an extension of the duty to public sector organisations.
What financial penalties could organisations face?
The Government’s response says the Bill will introduce powers to impose fines of up to £1 million or 1% of turnover or budget, whichever is higher.
Has the Government confirmed an import ban on goods made with forced labour?
Not in the response document. An import ban was among the options recommended by the Committee and considered in the Responsible Business Conduct Review. The Government said it was considering the review’s findings and would set out its position in due course.
Which organisations could be affected?
The proposed reforms are intended to apply to businesses subject to the Transparency in Supply Chains requirements and to extend the reporting duty to public sector organisations. The final scope will depend on the legislation.