A Fabian Society report estimates selected labor and environmental harms linked to UK business at £4.4 billion a year, as the government considers findings from a review of corporate conduct rules. The calculation excludes harm in overseas supply chains. Most of its environmental inputs cover England alone, apart from an estimate for PFAS pollution.
The report, published Oct. 19, counts costs borne by workers, the public and the environment, including unpaid wages, modern slavery and pollution. Official records capture only about one-third of the harm included in the society’s estimate. The overseas exclusion also limits what the figure says about UK consumption: About 42% of the country’s food supply is imported, according to UK government data cited by the Fabian Society.
Public spending presents another area of exposure. The Fabian Society report estimates that publicly funded purchases of imported goods across five high-risk product groups total about £13 billion a year. That includes some purchases by private providers paid with public funds. About £2.8 billion of the spending is on products from countries where forced labor involving those goods has been documented. The figures indicate risk; they do not show that abuse occurred in every purchase.
Fabian Society senior researcher Marcus Johns examined a Business, Human Rights and Environment Act-style proposal. Under the model, companies and public bodies would have duties to identify and address human rights and environmental risks throughout their value chains. The report puts annual business compliance costs at £363 million and the cost of operating an independent regulator at about £60 million, or roughly £420 million combined.
The report argues that gaps in existing law and weak enforcement leave workers, the public and the environment bearing costs. It says clearer duties could benefit businesses that already meet higher standards, while organizations covered by the proposal would bear its compliance costs. A similar proposal reached a second reading before Parliament was dissolved in 2024.
The UK’s 2025 Trade Strategy committed the government to reviewing responsible business conduct policy and raised concerns about the effectiveness of existing protections. The Independent reported that the review’s findings had not been released, although an announcement had been expected by the end of March. A government spokesperson told the newspaper that the government was considering the findings. No new release date was given.
