As the UK heads to the polls, ICAS CEO Bruce Cartwright CA sets out the “five asks”, from audit reform to sustainability, that would make Britain a better place to do business

As I write this, UK voters are about to elect a new government. In anticipation, ICAS has put together “five asks” from that government. I believe our wish list would enhance the functionality and attractiveness of the profession, help to restore trust in business, bring about much-needed improvements in our tax system, boost financial literacy, put UK business at the forefront of the sustainability agenda and encourage investment to stimulate our economy.

So I’m going to set out the case for each of these asks in more detail.

1. Audit and corporate governance reform

As I wrote back in December, following a disappointing but not in any way surprising King’s Speech, I risk sounding like a broken record whenever I discuss audit and corporate governance reform.

We have sought – and received – a measure of reassurance that this is high on the agenda for any incoming government. We know that finding time, especially in a new Parliament, is not easy. But – and this is the big “but” – everybody recognises this has been on the agenda for six years following such high-profile collapses as Carillion and Patisserie Valerie.

And there is near unanimity on the need for reform. The new government, whatever its colour, will be pushing at an open door. Surely now it’s time to walk through it!

2. Investing in our tax system and HMRC

Tax is a big issue in any election, but there’s been a lot of talk this time about where the money would come from, both to maintain current government spending and to invest for the future. If, for example, it is expected to come from a clampdown on tax avoidance, then we need a fully resourced HMRC to make that happen.

Investing in the tax system is actually a win-win – the evidence suggests that boosting HMRC staff numbers will generate more than enough income to cover the costs of their employment.

Recently HMRC swiftly backtracked on plans to close the tax helpline for six months a year. Had that gone ahead it would have made the work of the profession significantly more difficult. Rather than throw up fresh obstacles, government should be making it easier for people to pay their tax – and one of the simplest ways to do that is for HMRC to improve its service levels.

3. Making UK business more sustainable

Even though most people recognise climate to be the biggest challenge facing mankind, the mood music has been more than a little mixed. There seems to be an acknowledgement that we need to deliver on sustainability, but a reluctance to take the steps needed to demonstrate it’s being taken seriously enough. It’s action that’s needed, not fine words and grand pledges.

And it’s not as if we can’t see the impact of climate change. It’s no longer something happening in another continent. But too much of the discussion is wrapped in misleading talk about red tape. Sustainability isn’t compliance. I said this many years ago and it’s just as true now as it was then – we have to wake up and realise that sustainability is good business.

4. Skills and equipping our profession for the future

At the moment we in Scotland have a situation where the apprenticeship levy is simply swallowed up and spent by the government, whereas in England and Wales firms can apply to fund their apprenticeships from the levy. Businesses are paying what is effectively a tax. We need a consistent approach to apprenticeships across the UK, making it easier for employers to access funding.

“How many people really understand how basic budgeting works? Financial literacy should be a core part of everyone’s education”

We are also keen to raise the profile of financial literacy and training in schools. For example, how many people really understand about basic budgeting? Or that to save for your future you need to start doing so long before you turn 50? Financial literacy should be a core part of everyone’s education.

We would also like the government to teach young people about “doing the right thing”, which is what ethics is all about, as well as helping us strengthen the pipeline of talent, which means widening access into the profession using different routes.

5. Clear, consistent and proportional regulation

Regulation has a key role to play in maintaining reputation – and reputation is key when it comes to doing business, whether that relates to anti-money laundering, insolvency or tax advice.

But, rather than being viewed as a penalty, regulation has to come with an improvement methodology behind it so that businesses are being actively encouraged to raise their game. Applied in the right way, regulation can enhance trust and with it the reputation of the UK as an attractive place to do business.

Read ICAS’ five asks in full