ICAS CEO urges UK Government to back business in Autumn Budget

Ahead of the Autumn Budget announcement on Wednesday 26 November, ICAS (Institute for Chartered Accountants of Scotland) has called on Chancellor Rachel Reeves to deliver a budget that supports businesses and prioritises economic growth.

Bruce Cartwright CA, ICAS CEO, said: “The UK needs a budget that backs businesses as the engines of economic growth. We urge the Chancellor to focus on policies that stimulate enterprise, encourage investment, and provide long-term clarity for the business community.

“The annual round of tinkering with our already overlong and complicated tax legislation fuels further complexity and uncertainty. It also lacks transparency and doesn’t promote better understanding of the tax system. Any broader tax reform needs to be developed in a way that draws on the experience and expertise of business and doesn’t risk inhibiting growth at a time when investment and confidence are crucial.

“If the Government wants to raise taxes, it must be absolutely clear how that money will be spent – and how it will improve efficiency and productivity. Both the UK and Scottish Governments need to define what improving performance means in practice and set out clear plans for achieving this. It can’t just be window dressing ahead of elections every five years.

“The Government must demonstrate through action, not just words, that it’s committed to a sustainable growth strategy. Mixed messages, such as increasing the real cost of doing business through taxation, only undermines confidence. Businesses need certainty and predictability to plan, invest, and create jobs.

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“This budget is a pivotal moment to show that economic growth is a top priority.”

Economic commentator Professor Paul Johnson CBE echoed this view at the recent ICAS Annual Conference, held on London on 5 November, where he said:

“If you do need to increase taxes then you need to do it on income tax or VAT, not on businesses or employers. So, the politics and economics crash up against each other. You need clarity on what the model for growth is, and we are so far away from achieving that. The Government is talking a good game but not following it up in their actions. They need to change their actions as well as their words if we’re really going to get that growth”.