Hillsborough Law – How Will the FM Sector be Held to Account?

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• Hillsborough Law – How Will the FM Sector be Held to Account?

10 November 2025

Nikki Bowker, Partner at Devonshires, explores the impact of the Hillsborough Law on the FM sector. 

Nikki is an experienced commercial litigator and has acted for clients in the FM sector for over ten years.

 

New Rules for Private Sector Businesses Performing Public Functions

 

The Public Office (Accountability) Bill, commonly referred to as the Hillsborough Law, seeks to address the systemic failures highlighted by major public disasters including Hillsborough, Grenfell Towers, the infected blood scandal, and the Horizon scandal. The scrutiny that has been brought to bear on organisations involved in and held responsible for failings shone a light on a culture where protecting reputations and profits was prioritised over transparency and accountability. 

Importantly, reform is aimed not just at public bodies but at private organisations delivering public functions, with some specific focus on those with public safety responsibilities, for example organisers of sports and entertainment events. 

Whilst the FM sector is moving towards the expiry of PFI contracts, it is clear that the private sector will continue to play a significant role in the delivery of public functions and, indeed, that there will continue to be real commercial opportunities for the FM sector in this respect.

 

“FM providers should also expect contractual obligations directed at ethical conduct to filter through to supply chains as a result of the requirement for public authorities to introduce codes of ethical conduct.”

 

Significant Impact of the Duty of Candour

 

The Hillsborough Law introduces a range of new measures; however, the ones likely to have the most significant impact on FM providers are:

 

1. Statutory duty of candour and assistance; and
2. Obligations specific to those with health and safety responsibilities.

 

The proposed statutory duty of candour and assistance expands and strengthens existing obligations already imposed on certain public bodies and/or in certain types of proceedings. The statutory duty would apply in all inquiries (both statutory and non-statutory) and investigations. Compliance with the duty would be required not only by public bodies and officials but also private bodies and individuals which had a health and safety responsibility in connection with an incident or carried out activities in relation to the incident as a service provider to a public body and which had a significant impact on the public. For example, if a building maintenance failure at a school or hospital resulted in a major incident.

The new duty would require those caught by it to act with candour, transparency and frankness in relation to inquiries and investigations. Such a duty has often been described as requiring a party to play their hand with the cards face up. Rather than pursuing defensive strategies designed at protecting commercial interests and reputations, those caught by the duty are expected to place finding the truth, no matter how damaging, at the heart of its engagement with any investigation or inquiry.  

FM providers will not be able to approach these investigations as they would commercial disputes, and the most serious breaches of the new duty would be a criminal offence subject to a fine and/or maximum prison sentence of two years. 

 

Obligations Across the Supply Chain

 

FM providers should expect new or fortified contractual obligations directed at compliance with the duty where their primary client is a public body, as well as for those obligations to flow down the supply chain. Contractual mechanisms targeted at greater oversight/audit are likely to be introduced. Where public authorities and officials are seeking to demonstrate their own compliance, companies down supply chains will be looked to for assistance. This could be by obligations requiring proactive disclosure of relevant documentation and material up the supply chain.

Non-compliance, such as withholding information or obstructing investigations, for example,  may lead to reputational damage, contractual termination, or involvement in criminal investigations.

In addition, FM providers should also expect contractual obligations directed at ethical conduct to filter through to supply chains as a result of the requirement for public authorities to introduce codes of ethical conduct. Providers may want to review their own internal policies around conduct including incident reporting, whistle-blowing mechanisms and records retention. It is likely that FM providers will need to invest in training their staff on what compliance with the duty of candour and assistance should look like, how to respond to investigations and requests for assistance from clients, and ensuring records are complete and transparent. There may well be an impact on insurance costs. 

 

Strong Governance Offers a Strong Incentive 

 

Suppliers that are proactive, with strong governance, transparency and an ethical culture will be more attractive to public bodies seeking compliant commercial partners. Having a strong “candour ready” profile may help win contracts.

In addition, there may be demand for advisory or compliance services adjacent to FM, for example integration of supply chain transparency, incident disclosure frameworks and audit of contractor readiness.  There is also the opportunity for ancillary benefits to FM providers in that focus on strengthening record-keeping or improving whistleblowing mechanisms, could, for example, assist with providing assurance that supply chains are free from modern slavery or ESG objectives are being met.

Whilst the Hillsborough Law is at an early stage of the legislative process, it is the result of significant work by lawyers who acted for Hillsborough families and has been backed by some of those families, as well as survivors of Hillsborough. The introduction of the legislation follows years of sustained campaigning and will not be easily set aside. 

The bill may go through significant amendment on its passage through parliament. However, against the background of significant public scrutiny and criticism of how public bodies and officials have engaged with inquiries and investigations into major public disasters, organisations carrying out public functions or supplying public services should expect a cultural shift in this area.

Picture: a photograph of Nikki. Image Credit: Devonshires

Article written by Nikki Bowker | Published 10 November 2025

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