Crime and Policing Act 2026: a significant expansion of corporate criminal liability

The enactment of the Crime and Policing Act 2026 on 29 April 2026 marks a significant development in UK corporate criminal law. The Act introduces a material expansion in the scope of corporate criminal liability, widening the range of offences for which companies can be held liable by reference to the conduct of senior managers. 

Background

The UK has historically applied the "identification principle" when attributing criminal liability to corporates. This required prosecutors to establish that an individual representing the company's "directing mind and will" (typically board-level directors) committed the relevant offence. This approach has long been criticized as ineffective in the context of large and decentralized organizations, where decision-making is often delegated across multiple layers of management. 

The concern was addressed by the Economic Crime and Corporate Transparency Act 2023, which expanded the scope of attribution and introduced a statutory senior manager attribution test (in force since December 2024), whereby a company will be criminally liable where a senior manager:

1. commits a criminal offence; and
2. does so within the actual or apparent scope of their authority.

"Senior manager" is defined by reference to function rather than title, and is likely to capture individuals who:

1. play a significant role in decision-making about how the whole or substantial part of the organization's activities are managed or organized; or
2. have actual management or control over such activities.

Key change

The Crime and Policing Act does not further expand the senior manager test but extends the senior managers attribution model across all criminal offences, rather than limiting it to economic crime. It significantly lowers the evidential barrier for prosecutors seeking to establish corporate liability, and applies irrespective of formal title, focusing instead on the substance of an individual's role and authority.

In effect, companies may now be held criminally liable for a much wider range of conduct carried out by senior personnel across the business.

Interaction with existing regimes

The reforms sit alongside – and do not replace – existing corporate criminal "failure to prevent" offences. It is worth noting that there is no reasonable / adequate procedures defense available for corporates to these wider offences.

Practical implications

The reforms significantly increase potential exposure for corporate clients, particularly those with complex or decentralized management structures. Key implications include:

• Broader range of offences: Liability is no longer confined to financial or economic crime and may arise across the criminal law, including in areas such as health and safety, environmental regulation and operation misconduct.
• Expanded attribution risk: A substantially wider group of individuals may now expose the company to criminal liability, including senior operational and functional leaders who would not previously have been considered part of the "directing mind”.
• Increased enforcement viability: The changes address a long-standing evidential barrier, making it more feasible for enforcement authorities to pursue corporates, particularly larger organizations.
• Governance and oversight challenges: Companies will need to consider whether existing governance frameworks adequately reflect where real decision-making authority sits within the organization.
• Employment law considerations: There are clear implications for senior manager accountability, disciplinary processes involving senior employees and internal investigations / escalation procedures.

Commencement

The extended corporate liability regime (replacing s.196 ECCTA and applying across all criminal offences) will apply to offences committed on or after 29 June 2026.

This is a material development in the UK corporate criminal liability landscape, and one which is likely to drive both enforcement activity. Organizations will need to ensure that compliance programs (including those designed for "failure to prevent" offences) are aligned with this broader risk.