ICAEW has opened communication with the new Labour government ahead of the King’s speech, outlining the need for movement on audit reform, mutual recognition of qualifications, and business taxation.

ICAEW’s Managing Director (Reputation and Influence) Iain Wright was one of several business representatives invited by the new Secretary of State for Business and Trade Jonathan Reynolds MP to take part in a wide-ranging discussion on Tuesday. It covered potential areas of focus for a new industrial strategy, how to support small businesses through enhanced access to capital, championing British trade and exports, with an emphasis on mutual recognition of professional qualifications, and delivering a new deal for working people.

“It was good to hear directly from the new Secretary of State for Trade in his first week in the job,” says Wright. “His priority is partnership with business and ICAEW members are uniquely placed to support the new Government in their missions, and especially their Industrial Strategy.”

On the same day ICAEW Chief Executive Alan Vallance hosted Ceri Smith, Director General for Strategy and Investment in the Department for Business and Trade, at Chartered Accountants’ Hall. The Department had requested the meeting to get the ICAEW perspective on how to increase foreign direct investment into the UK and to consider the challenges faced by UK based growing businesses.

Vallance reminded the new government of its own commitments on audit and corporate governance reform, and mutual recognition of professional qualifications to stimulate trade and build the UK’s ‘soft power’ through education. Proportionate reform was a way of making the UK a more attractive place to invest.

“It was a priority for ICAEW to engage with senior officials at DBT at the beginning of the new government, as they aim to make Britain a great place to invest and to encourage wider business investment,” Vallance says. “ICAEW members know why businesses invest and why they don’t. We will provide the Government with ideas and obstacles that will help them in their mission for growth.”

Vallance has sent several letters to members of the new cabinet this week, including the Prime Minister, Sir Keir Starmer; the Chancellor of the Exchequer, Rachel Reeves; and the Department for Business and Trade. Congratulating each of them in their new roles, he outlined the importance of critical issues, such as audit reform and economic growth, offering to work with the government to help with the implementation of appropriate measures.

“We believe that the prospects for sustained economic growth will be enhanced if government prioritises audit and corporate governance reform,” he wrote in his letter to the Prime Minister. “Since the collapse of Carillion in 2018, much has been done by the profession and the regulators to fix systemic issues, but further progress is now contingent on legislative action from government. Swift movement on this issue will revitalise investor confidence and help establish the UK as a leader in sustainable and resilient corporate governance, poised for the net-zero transition.”

Alongside these letters, ICAEW sent two policy briefings to new ministers. The first focused on the local audit crisis, and the second on corporate governance and audit reform. The briefings were chosen to go out ahead of the King’s Speech due the urgency of the issues.

ICAEW stressed the risk to local public services if a local audit recovery plan is not legislated for before the summer. On corporate governance and audit reform, ICAEW urged the government to legislate proportionately to enhance investor confidence, improve financial reporting and avoid the risk of disorderly corporate collapse.

Engagement with relevant ministers will continue in the coming days as ministerial responsibilities and anticipated policy announcements become clearer.

In a meeting with Wright and Vallance in May, Jonathan Reynolds said the Labour Party’s aim in government was to ensure the UK is perceived as competitive and as an attractive place to do business. He has invited members to email TellJonathan@BusinessandTrade.gov.uk with any comments on the new government’s business priorities.