British businesses have made record progress in boosting gender representation in boardrooms, with women now holding 43% of roles on company boards across FTSE 350 firms. This marks a significant step forward in increasing female leadership, driven by voluntary action rather than mandatory quotas.
The latest FTSE Women Leaders Review, backed by the UK government and major corporations such as Lloyds Banking Group and KPMG, shows that companies have exceeded the 40% target for female representation in leadership positions. The increase reflects a shift towards greater inclusivity at the top levels of business, though challenges remain in getting more women into executive roles such as CEOs and Chairs.
Across the FTSE 350, there are now 1,275 women on boards and 6,743 in senior leadership roles, making up 35% of executive positions. The rise is particularly strong in FTSE 100 companies, where women’s representation on boards has reached 44.7%, up from 42.6% last year. These figures confirm the UK’s position as one of the leading countries in boardroom gender diversity, second only to France among G7 nations.
The government has welcomed the progress but acknowledges that more needs to be done. Rachel Reeves, the Chancellor of the Exchequer, said the barriers stopping women from reaching top decision-making roles must be tackled. “The UK is leading the way on gender equality in boardrooms, but we cannot be complacent,” she said. “More must be done to ensure talent is recognised and given the opportunity to thrive.”
Baroness Gustafsson OBE, Minister for Investment, highlighted the economic benefits of having more women in leadership roles. “Women bring fresh ideas and add value across organisations,” she said. “The momentum is there, but we need to keep going.”
Unlike some other countries that use strict quotas, the UK’s progress has been achieved through voluntary commitments from businesses. The approach has been seen as proof that firms recognise the benefits of a more balanced workforce and are willing to act without the need for legislation.
However, while more women are taking up Chair and Finance Director roles, the number of female CEOs in the FTSE 350 has dropped slightly from 20 to 19 in the past year. The government and business leaders say they are committed to improving this.
The government is also introducing policies to strengthen workplace protections for women. The Employment Rights Bill and the Plan to Make Work Pay aim to increase protections for women experiencing workplace discrimination, pregnancy-related dismissals, and challenges linked to the menopause.
Vivienne Artz, CEO of the FTSE Women Leaders Review, said that while the numbers are moving in the right direction, efforts must continue. “FTSE 350 company boards now have a strong gender balance, but there is still work to do to reach 40% in leadership roles by the end of this year,” she said.
Business leaders are calling on companies to keep up the momentum. Penny James and Nimesh Patel, Co-Chairs of the FTSE Women Leaders Review, said equality of opportunity should remain a priority. “Balance on FTSE 350 boards has been achieved and the number of women in executive teams is rising, but a bigger effort is needed to reach parity in key leadership roles,” they said.
Lloyds Banking Group and KPMG, both major sponsors of the Review, reinforced the need for gender-balanced leadership. Bina Mehta, Chair of KPMG UK, said a diverse leadership team leads to better decisions. “A strong, diverse workforce is essential to business success,” she said. “When leadership reflects the wider society, companies understand their customers better, drive innovation and grow sustainably.”
The Review has set clear goals for further progress. By the end of 2025, FTSE 350 firms should aim for at least 40% female representation in leadership roles and have at least one woman serving as Chair, CEO, Senior Independent Director, or Finance Director. The recommendations also extend to the UK’s largest private companies, which are being encouraged to match the progress seen in listed firms.
With women now holding a greater share of board positions than ever before, UK businesses have shown that progress can be made without regulation. But as the figures show, the next challenge is ensuring more women reach the most senior executive roles. The government and business leaders say they are determined to keep pushing for further progress.
