Spring Statement recommendations

In the weeks before the Spring Statement (26 March) ICAEW wrote to the Chancellor of the Exchequer and the Chief Secretary to the Treasury to share members’ views on what should be at the forefront of government thinking.

Director of Public Sector and Taxation Alison Ring wrote to the Chief Secretary, advocating for a long-term fiscal strategy, effective financial management in government departments and simplified local government funding.

Meanwhile, to support the government’s stated aim of kick-starting economic growth, ICAEW Chief Executive Alan Vallance called for: 

• the acceleration of existing infrastructure projects and smarter approaches to investment to prevent displacing private sector funding;
• action to support the adoption of new technologies (particularly artificial intelligence), including the creation of new business growth voucher schemes; and
• a rethink of policy approach to Level 7 Apprenticeship funding. 

Growth, skills and trade

The issue of funding for Level 7 Apprenticeships was also taken up with the Department for Business and Trade this month. ICAEW’s Chief Policy and Communications Officer, Iain Wright met with senior officials to promote ICAEW’s recommendations for the new Industrial Strategy. 

Wright reiterated ICAEW’s call for consistency in policy and warned that government plans for apprenticeship funding were particularly damaging for smaller and regional businesses, which are now planning on turning down work or offshoring it. 

At the start of the month, Wright accompanied Secretary of State for Business and Trade Jonathan Reynolds and Foreign Secretary David Lammy on a trip to Japan in his capacity as Co-Chair of the Professional & Business Services Council (PBSC). The delegation focused on furthering the UK’s new Trade Strategy, with Wright promoting ICAEW’s recommendations, which include:

• reflecting services equally with goods;
• securing UK supply chains;
• supporting small businesses;
• simplifying international trade;
• playing to UK’s strengths; and
• ensuring trust.

How to develop AI regulation

Head of Tech Policy Esther Mallowah welcomed Shadow Secretary of State for Science, Innovation and Technology, Alan Mak, as well as representatives from practice and business to Chartered Accountants’ Hall to discuss how to regulate artificial intelligence (AI) for innovation. 

ICAEW President, Malcolm Bacchus, chaired the discussion, which highlighted the importance of a clear, easy-to-follow framework that is tailored by sector. 

Many of those attending shared the view that the need for investment in developing the key skill sets of the future economy is among the most pressing issues. The role of a robust assurance framework in encouraging demand for and adoption of AI in the UK was also recognised. 

The Shadow Secretary of State was particularly interested in hearing the attendees’ perspectives on the government’s AI Opportunities Action Plan and measures that could make the UK a tech superpower. 

HMRC: past and future

On 11 March, ICAEW and the Chartered Institute of Taxation (CIOT) hosted an event to mark the 20th anniversary of the creation of HMRC. Exchequer Secretary to the Treasury, James Murray, delivered the keynote address and announced an increased £3,000 self-assessment threshold for trading income. 

During the conference, Murray met with Chief Executive Alan Vallance, President Malcolm Bacchus, Tax Director Alison Ring, the CIOT leadership, and the incoming Permanent Secretary and Chief Executive of HMRC John-Paul Marks. 

ICAEW also welcomed: 

• Treasury Select Committee Chair, Dame Meg Hillier; 
• former Chief Secretary to the Treasury Rt Hon David Gauke; and 
• former Permanent Secretary to the Treasury Lord Macpherson of Earl’s Court.

The event discussed the future of HMRC including digitalisation. Listen to our Insights Podcast: Happy birthday, HMRC to find out more. 

Public sector finances

This month, ICAEW facilitated a round table in parliament to discuss the UK’s long-term fiscal challenges and promote Simply UK Government Finances 2024/25, an annual publication authored by Martin Wheatcroft. 

The event was attended by:

• Chair of the Public Accounts Committee, Sir Geoffrey Clifton-Brown; 
• Chair of the Office for Budget Responsibility Richard Hughes; 
• representatives from the NAO; 
• CIPFA; and 
• other public bodies and thinktanks. 

The discussion covered issues related to:

• future health spending amid an ageing population; 
• planning for the next unemployment shock; 
• improving fiscal literacy in government and the media; and 
• local government finance.

Economic crime and Companies House reform 

Members of parliament on the Business and Trade Committee attended an event on economic crime and Companies House reform, organised by Director of Trust and Ethics Gareth Brett, Head of AML Michelle Giddings and Policy and Public Affairs Manager Patrick Tettmar.

Attendees included Business and Trade Committee Chair Liam Byrne. The group discussed the commercial impact of fraud and misinformation on the Companies House register and suggested lines of inquiry as the committee fulfils its obligation to scrutinise Companies House.