Recommendations for government

ICAEW's recommendations for the UK government to stimulate sustainable growth are drawn from members' insights and grounded in academic understanding of the economy and policymaking. Our recommendations, include:

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Employment costs

Employers’ NIC increases have increased cost bases.

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Access to skills

Align government policies to avoid skills shortages

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Investment incentives

Businesses are being deterred from investing in R&D

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Tech adoption

Support the entire innovation journey

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Regional parity

Enables businesses across the UK

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Mindset

Acknowledge the full business lifecycle

Latest developments

Policy alignment

Policy alignment vital to UK growth plans, says ICAEW

The government’s proposed Industrial Strategy is a positive approach, but unless there is greater alignment in policy areas such as tax and skills, growth will remain out of reach, warns ICAEW.

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International trade

Trade Strategy Review: six principles for success

ICAEW has taken the opportunity to comment on the Trade Strategy Review, received from the Department for Business and Trade on 22 November.

Read

Spring Statement 2025

Chancellor must prioritise skills, tech and infrastructure

To kickstart economic growth the government needs to accelerate infrastructure projects, ensure access to skilled workers and support investment in new technologies, says ICAEW.

Read

Our recommendations

Employment cost

Ensure UK companies have competitive cost base

The employers’ NIC increases in the 2024 budget have significantly increased the cost base for many businesses. Employers need to have the confidence to hire again.

Budget drives dramatic drop in business confidence

Access to skills

Policy alignment to prevent skills shortages

For higher skill levels global shortages are exacerbated by policy decisions. Regulation deters hiring in the UK and prevents the import of talent, while apprenticeships are not as effective as they could be in training domestic workers. L7 apprenticeships should be extended not curtailed.

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Denim, data and developing skills

Lessons on how to address some of the most pressing skills problems facing the UK economy.

Investment incentives

Encourage investment to boost productivity

Capital providers need to be encouraged to invest more. Lack of certainty and an increasing tax base have had the opposite effect. Businesses are being deterred from investing in research due to fears about the recovery of R&D tax relief.

Technology adoption

Target the entire innovation journey

Novel technologies go through several stages on route to market. Policies must target across the waypoints on the innovation journey, not focus on one firm or stage.

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A recipe for growth

A local economic success story in Leeds offers broader lessons for how to encourage investment and so boost productivity.

Regional parity

Enable businesses across the UK to succeed

Government needs to target investment to lower the cost of capital for difficult projects. Place-based growth policies must create conditions for novelty to emerge and thrive across the UK, while also unlocking economic potential of stagnating businesses.

Mindset

Become comfortable with failure and renewal in the business cycle

Government needs to assess its risk appetite for market dynamism. A higher risk appetite may mean faster market dynamism, but the cost is greater frequency of company failure. Regulators should not take a default risk-averse approach.

Chancellor promises 'radical shake-up' of regulation

Related resources

Looking up the front of the Bank of England towards a blue sky.

cargo trade ship seen from above aerial birds eye view shipping containers being loaded by cranes at a dock

Thought leadership

How to fix VAT

ICAEW explores the challenges and opportunities offered in reimagining VAT and it's application. Read about the history of VAT, the lessons that can be learned from outside the UK and the potential of digitalisation.

Browse resources

Trade

How to reinvigorate the UK’s international trade performance

The UK’s international trade activity is falling behind that of its economic peers. Here, we examine what changes are needed from policymakers and business to close that gap and why chartered accountants are so well-placed to help them.

Shaping sustainability standard setting

In this thought leadership report, ICAEW’s Corporate Reporting Faculty analyses the key features of accounting standard setting and considers the challenges faced by sustainability standard-setters.

Read now

Business law

Better Regulation

Drawing on our experience and insights from ICAEW members, our better regulation work contains information on the UK’s regulatory regime and considers how it might be improved.

Find out more

Analysis

Spring Statement 2025

On 26 March, the Chancellor will deliver her Spring Statement. Read ICAEW's recommendations to ahead of the event, and see our analysis and reaction on the day.

Find out more

Research

UK Business Confidence

ICAEW's Business Confidence Monitor is one of the largest and most comprehensive quarterly surveys of business conditions and the health of the UK economy.

Read the latest findings

Resources

Economy

Expert analysis on the latest national and international economic issues and trends, and interviews with prominent voices across the finance industry alongside data on the state of economy.

Visit the hub