THE BUDGET VERDICT
Breathing space, but no big decisions
THE BUDGET VERDICT
Breathing space, but no big decisions
John Healey’s first Budget offers some small welcome – and other unwelcome – measures. But the UK taxation system is crying out for ‘radical simplicity’, says Gail Boag, ICAS CEO
John Healey’s first Budget offers some small welcome – and other unwelcome – measures. But the UK taxation system is crying out for ‘radical simplicity’, says Gail Boag, ICAS CEO
Chancellor Healey addresses the Commons
Chancellor Healey addresses the Commons
When I spoke at a reception for members of the Scottish Parliament on Tuesday night, I argued that the UK does not lack ambition, talent or ideas. What is often missing is the confidence to turn those strengths into lasting growth. A closer, more open relationship between business and government, built on clarity and simplicity, can give businesses the confidence to invest and grow.
I called for “radical simplicity”. By this, I mean being clear about the outcomes we want, simplifying the systems that stand in the way, and working together to deliver them.
The issues facing policymakers are complex, but the way forward does not need to be. Business and government both want sustainable growth, good jobs and strong public services. Those shared goals should be the starting point for working better together.
This Budget offers some relief for households and small businesses facing immediate pressures, but it leaves bigger questions about how the government intends to support lasting growth. Investment decisions extend well beyond the next Budget. Businesses need systems that allow them to plan ahead.
Polling our members before the Budget, we found tax simplification and certainty featured among the top three long-term growth priorities for 63% of respondents. Sustainable public finances were selected by 58% and reducing business cost pressures by 53%. Members recognise the need to fund public services responsibly. They also see the obstacles that make it harder for businesses to grow.
“Radical simplicity offers a way forward: greater clarity, closer partnership and a sharper focus on delivery. That is how we turn ambition into lasting prosperity”
Early findings from a membership survey launched immediately after the Budget paint a mixed picture. Exactly half of respondents feel that the Budget would have neither a positive nor negative impact on economic growth, suggesting that many remain unconvinced that the changes will make a meaningful difference.
Looking at individual measures, more than four-fifths support the increase in business rates relief, while nearly two-thirds favour moves to support founders. However, four-fifths opposed the increase in property and savings income tax, and more than half opposed more frequent payment requirements for income tax self-assessment taxpayers.
We should not have to make the case for a simpler system at every Budget. Taken together, these findings reinforce the need to look beyond individual measures and consider how the overall system supports growth. The government needs to commit to meaningful, long-term reform and consider how its policies add up, particularly for investment, employment and competitiveness.
This is where CAs can make a decisive contribution. Assessing investments, understanding performance and accounting for public money are central to our work. Every promise ultimately has to be measurable, affordable and deliverable.
Part of our responsibility is helping policymakers understand how their proposals will affect the organisations expected to put them into practice. Our members see these challenges first-hand. Government should draw on that experience while policy is being developed, when there is still time to test assumptions and work through the consequences.
That does not mean expecting government to agree with every proposal. It means earlier professional engagement, joined-up policymaking and, ultimately, long-term reform. We are not here to defend the status quo or tear it up. We want to help make better policy.
Skills development shows what this can look like in practice. ICAS has more than 5,000 students in training, while the ICAS Foundation has supported over 450 young people from low-income backgrounds towards careers in finance and accounting. Those opportunities help people build their careers, innovate and grow businesses. They also strengthen the tax base on which public services depend.
Radical simplicity offers a way forward: greater clarity, closer partnership and a sharper focus on delivery. That is how we turn ambition into lasting prosperity. ICAS and our members are ready to play our part.
You can submit your own response in ICAS’ UK Budget flash survey
Chancellor Healey addresses the Commons
Chancellor Healey addresses the Commons
When I spoke at a reception for members of the Scottish Parliament on Tuesday night, I argued that the UK does not lack ambition, talent or ideas. What is often missing is the confidence to turn those strengths into lasting growth. A closer, more open relationship between business and government, built on clarity and simplicity, can give businesses the confidence to invest and grow.
I called for “radical simplicity”. By this, I mean being clear about the outcomes we want, simplifying the systems that stand in the way, and working together to deliver them.
The issues facing policymakers are complex, but the way forward does not need to be. Business and government both want sustainable growth, good jobs and strong public services. Those shared goals should be the starting point for working better together.
This Budget offers some relief for households and small businesses facing immediate pressures, but it leaves bigger questions about how the government intends to support lasting growth. Investment decisions extend well beyond the next Budget. Businesses need systems that allow them to plan ahead.
Polling our members before the Budget, we found tax simplification and certainty featured among the top three long-term growth priorities for 63% of respondents. Sustainable public finances were selected by 58% and reducing business cost pressures by 53%. Members recognise the need to fund public services responsibly. They also see the obstacles that make it harder for businesses to grow.
“Radical simplicity offers a way forward: greater clarity, closer partnership and a sharper focus on delivery. That is how we turn ambition into lasting prosperity”
Early findings from a membership survey launched immediately after the Budget paint a mixed picture. Exactly half of respondents feel that the Budget would have neither a positive nor negative impact on economic growth, suggesting that many remain unconvinced that the changes will make a meaningful difference.
Looking at individual measures, more than four-fifths support the increase in business rates relief, while nearly two-thirds favour moves to support founders. However, four-fifths opposed the increase in property and savings income tax, and more than half opposed more frequent payment requirements for income tax self-assessment taxpayers.
We should not have to make the case for a simpler system at every Budget. Taken together, these findings reinforce the need to look beyond individual measures and consider how the overall system supports growth. The government needs to commit to meaningful, long-term reform and consider how its policies add up, particularly for investment, employment and competitiveness.
This is where CAs can make a decisive contribution. Assessing investments, understanding performance and accounting for public money are central to our work. Every promise ultimately has to be measurable, affordable and deliverable.
Part of our responsibility is helping policymakers understand how their proposals will affect the organisations expected to put them into practice. Our members see these challenges first-hand. Government should draw on that experience while policy is being developed, when there is still time to test assumptions and work through the consequences.
That does not mean expecting government to agree with every proposal. It means earlier professional engagement, joined-up policymaking and, ultimately, long-term reform. We are not here to defend the status quo or tear it up. We want to help make better policy.
Skills development shows what this can look like in practice. ICAS has more than 5,000 students in training, while the ICAS Foundation has supported over 450 young people from low-income backgrounds towards careers in finance and accounting. Those opportunities help people build their careers, innovate and grow businesses. They also strengthen the tax base on which public services depend.
Radical simplicity offers a way forward: greater clarity, closer partnership and a sharper focus on delivery. That is how we turn ambition into lasting prosperity. ICAS and our members are ready to play our part.
You can submit your own response in ICAS’ UK Budget flash survey
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