The Institute for Chartered Accountants in England and Wales (ICAEW) has outlined a manifesto urging political parties to develop a new vision for the UK economy ahead of the Spring Budget and impending general election.
The 16-point manifesto highlights 7 key areas for the next Government to focus on, including recommendations for enhancing economic resilience, addressing weak productivity, and creating an environment conducive to business growth.
Iain Wright, ICAEW managing director, said:
"Entrepreneurs are the lifeblood of our economy, but ICAEW members - who advise businesses from start-up to scale-up - tell me it isn't as easy as it once was."
"This set of recommendations, grounded in the insight and experience of our members across the country, will help the next Government and parliament take the actions necessary to make it easier to start, run, and grow a business and boost the resilience and strength of the UK economy."
The economy of the future
According to the manifesto, the UK is one of the easiest places to start a business in the world. However, with growth remaining flat and inflation putting a strain on public finances, the Chancellor is set to deliver his 2024 Spring Budget against a challenging economic backdrop.
The ICAEW claims that improving weak productivity levels will be the biggest economic challenge the next parliament faces, while recent technological developments represent an opportunity "unseen since the invention of the steam engine".
The next UK Government must therefore embrace forces like artificial intelligence (AI) and the transition to net zero to build a resilient economy of the future.
Recommendations
In light of these economic challenges and changing market conditions, the ICAEW set out seven core competencies that the Government should act on:
- Productivity: Unlock the potential of UK businesses by removing barriers to growth and cutting red tape.
- Skills: Upskill the workforce and promote inclusion in the workplace to prepare for the economy of the future.
- Sustainability: Harness green technology and help businesses transition to net zero to tackle climate change and power growth.
- Innovation: Invest in technological innovation to nurture new and existing market strengths.
- Resilience: Set out a long-term strategy to keep borrowing under control and improve public services.
- Trust: Reinforce the UK's reputation by improving corporate governance, transparency and tackling economic crime.
- Trade: Prioritise trade policies that promote the UK services sector and improve export opportunities for SMEs.
The 16-point productivity plan included proposals for business start-up passports to streamline HMRC registrations, integrate with Companies House verification and support banking set-up.
The Government should also outline ethical frameworks for AI to help developers, deployers and users harness its benefits responsibly.
Furthermore, the ICAEW recommended the establishment of a new permanent body accountable directly to parliament to check that the regulatory regime is functioning as intended.
Other recommendations included a simplified and digitalised tax system, and a commitment to exceeding 3% of GDP in research and development spending.
The ICAEW also highlighted the crucial insights that accountants can provide:
"Given their central role at the heart of running and advising millions of businesses, our members are keen to work with the new parliament to build a platform of improved productivity, greater efficiency and effectiveness, and rising prosperity for the rest of the decade."
The full manifesto can be found on the ICAEW website.
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