ICAEW at 10 Downing Street

In February, ICAEW took its members’ views to the heart of government as Chief Executive Alan Vallance and Managing Director, Reputation and Influence, Iain Wright, met with the Prime Minister’s Business Adviser Varun Chandra. 

During the meeting, Vallance showcased the critical role ICAEW members play in driving economic prosperity across the UK. He shared insights from ICAEW’s latest Business Confidence Monitor and highlighted the importance of policies that support stability, and long-term growth was discussed. 

Varun Chandra expressed keen interest in receiving further insights from ICAEW’s membership, recognising the Institute as a trusted partner and expert voice on business confidence and economic challenges.

Informing tax policy

Earlier in February, ICAEW’s authority as an expert in tax policy was recognised in Parliament during the Finance Bill 2024-25 Committee Stage debate. The Shadow Financial Secretary Gareth Davies highlighted ICAEW’s concerns about changes to the domicile special rule, referencing ICAEW’s Tax Faculty special briefing on ‘remittance’ changes.

Similarly, the Exchequer Secretary responded positively to concerns raised by ICAEW’s Head of Tax Strategy, Frank Haskew, about Making Tax Digital for Income Tax. The Minister welcomed ICAEW’s continued engagement with senior HMRC officials to ensure that implementation challenges are addressed.

In January, HMRC also confirmed it would be altering proposed tax rules changes relating to employee ownership trusts in response to an ICAEW briefing note sent to parliamentarians at the end of 2024. 

ICAEW remains committed to engaging closely with the Treasury and Shadow Treasury teams to shape these critical developments.

HMRC service standards

At the end of February, ICAEW’s Tax Faculty met with the Exchequer Secretary to discuss ways to improve HMRC service standards. This followed the publication of a joint ICAEW-CIOT report in December, which called for an external tracking mechanism to cut down on progress-chasing calls and identified potential cost savings of more than £36m annually for HMRC. 

Supporting AI opportunities

Managing Director, Reputation and Influence, Iain Wright, has written to Science, Innovation and Technology Secretary Peter Kyle, offering ICAEW’s support in the implementation of the AI Opportunities Action Plan. 

Meanwhile, ICAEW’s Head of Tech Policy, Esther Mallowah, met with the AI and digital specialist for the government’s Science, Innovation and Technology Committee. Mallowah shared ICAEW members’ views on barriers to AI adoption, including data security and regulatory clarity, and heard about the committee’s priorities around international regulatory alignment, skills and access to talent.

Industrial strategy and trade

ICAEW submitted a detailed response to the Business and Trade Committee’s inquiry on industrial strategy, emphasising the vital role of the accountancy profession in the UK’s economy. 

The response highlighted the government’s recognition of professional services as one of the UK’s eight key growth sectors and advocated for investment in skills to maintain the UK’s competitive edge. ICAEW underscored the importance of supporting future-focused industries, such as technology and net-zero initiatives, to ensure long-term prosperity for the UK.

ICAEW also contributed to the government’s Trade Strategy Review, outlining six principles for a successful trade strategy:

1. Treat services equally
2. Secure UK supply chains
3. Support SMEs
4. Make it easy
5. Play to UK strengths
6. Trust business

Meanwhile, Iain Wright wrote to the newly appointed Economic Secretary to the Treasury, Emma Reynolds, highlighting areas, including pensions reform, green finance and the need for a globally competitive financial services sector. ICAEW reiterated its commitment to supporting the government’s efforts on anti money laundering and counter-fraud initiatives – critical areas where ICAEW members play a pivotal role in safeguarding the integrity of the UK’s financial system.

Finally, Wright voiced ICAEW’s support for the UK’s accession to the Pan-Euro-Mediterranean (PEM) Convention in a letter to Douglas Alexander, Minister for Trade Policy. ICAEW emphasised that joining the PEM Convention would benefit UK businesses through better supply-chain integration, lower duty costs, and simplified customs processes, ensuring that the UK remains a competitive trading nation.