Skills and opportunity

In December, ICAEW outlined concerns about the government’s proposals to reform apprenticeship funding, warning that it may lead to adverse consequences for the accountancy profession and wider UK economy. 

Letters were sent to a range of political stakeholders on the possible consequences for the UK’s long-term growth prospects, including members of the Education Select Committee. 

The Business and Trade Secretary and the Shadow Minister received letters from Alan Vallance, ICAEW’s CEO, outlining ICAEW’s view that funding for Level 7 apprenticeships should remain for those aged 25 and under, given their role in the economy and in enabling social mobility. 

ICAEW representatives also spoke to the Shadow Business and Trade Secretary, Andrew Griffith MP, on the issue of apprenticeships. 

Industrial strategy

Early in January, Chair of ICAEW’s Board Peter Wyman and Managing Director, Reputation and Influence, Iain Wright joined a call with Secretary of State for Business and Trade, Jonathan Reynolds. 

ICAEW was among 50 representatives from business to hear the department’s priorities for 2025, particularly around the government’s imminent industrial strategy. Sarah Jones, the Minister for Industry, confirmed that there had been 3,000 responses to the government’s consultation on the strategy, the major issues raised being energy, skills and access to finance. This aligns with ICAEW’s response to the consultation which called for a focus on developing skills needed for growth, as well as clear long-term strategies for sectors including energy. 

Wright asked Reynolds and Jones about regulatory reforms and the need for joined-up thinking across government departments, highlighting the example of proposed changes to Level 7 apprenticeships.

At the end of the month, ICAEW Director of Policy, John Boulton, discussed the government’s industrial strategy at the Fabian Society’s New Year Conference. Boulton joined Jones on a panel discussing the strategy and the key sectors for growth, which includes the professional services industry.

In December, ICAEW responded to the Treasury's call for evidence for its Financial Services Growth and Competitiveness Strategy. The institute highlighted the strength of the UK's financial services sector and the contributions of the profession to its competitiveness. 

ICAEW identified significant growth opportunities related to technology and sustainability and urged the Treasury to be bold in modernising its approach to regulation. ICAEW representatives are due to meet and discuss our response with the Economic Secretary to the Treasury in February. 

International trade 

John Boulton also participated in a roundtable hosted by Minister for Trade Policy, Douglas Alexander. Topics discussed included the government’s shifting approach to international trade, with the broadening of trade instruments and evolving trade relationships with the EU, US and India. 

Boulton was able to discuss ICAEW’s response to the Department for Business and Trade’s Trade Strategy consultation, which was submitted on 17 January. Drawing on feedback from members, ICAEW emphasised the importance of reforming practices related to exports and imports, as well as the mutual recognition of professional qualifications. 

The Finance Bill 

ICAEW’s Tax Faculty has sent four briefings to parliamentary stakeholders ahead of the Finance Bill’s consideration by MPs. 

Exchequer Secretary James Murray MP, Shadow Financial Secretary Gareth Davies MP, and the House of Commons Scrutiny Unit received briefings outlining ICAEW’s reaction to measures announced in the Budget, covering:

• furnished holiday lettings; 
• employee ownership trusts; 
• changes to capital gains tax rates; and 
• changes to stamp duty land tax rates. 

ICAEW also responded to a specific request from the Shadow Financial Secretary’s office for assistance in scrutinising the Bill. 

HMRC’s customer service challenge

In December, ICAEW and the Chartered Institute of Taxation (CIOT) published a joint report on tackling HMRC’s customer service challenge. The report, which makes 10 recommendations for improving standards, was well received by Spencer Thompson, Special Advisor to the Treasury (Tax) in a meeting with Alison Ring, ICAEW’s Director of Public Sector and Taxation. 

The report was also sent to James Murray, Exchequer Secretary to the Treasury as well as relevant members of the opposition, Liberal Democrats and ICAEW members in the House of Lords. The report, which drew on the experience of ICAEW members, calls for the establishment of an automated tracking system which could save HMRC the work of around 1,000 full-time employees per year, or approximately £36m. 

Business confidence

ICAEW’s Chief Executive Alan Vallance met the Deputy Leader of the Liberal Democrats and the party’s Treasury Spokesperson Daisy Cooper. In the meeting, Vallance discussed the latest findings of the Business Confidence Monitor, which revealed a dramatic drop in confidence following measures announced in the Budget.

Vallance also discussed ICAEW’s position on other key issues, including: 

• access to finance; 
• audit and corporate governance reform; and
• sustainability reporting and assurance.