A government-backed report on the UK's financial services industry is expected to call for an end to the requirement for companies to issue quarterly updates.

John Kay, a professor at the London School of Economics, will warn that the culture of "short-termism" is hurting Britain's economy.

Within that, Kay's report - due out today - will criticise remuneration policies at companies which reward short-term performance.

As such, he is understood to be calling for an end to quarterly updates from listed companies, with a return to half-yearly updates instead.

Kay has criticised the breakdown of trust between the financial world and the rest of the populace.

He told BBC Radio 4's Today programme: "A culture of trust relationships, which is actually central to making financial services work, has been displaced by essentially a culture of transactions and trading."

He explained that the financial markets were dominated by too many middlemen, and confirmed that his recommendations may mean job losses in the City.

"Over the last 10 years, companies have done OK, people in the financial sector have made a lot of money, and savers have done pretty badly," he said.

His comments come following an unprecedented backlash by institutional shareholders against the pay policies of top companies.

The 'shareholder spring' which has been seen recently has already caused boards to review planned bonus packages, and Kay's report is expected to provide more impetus for further change.