CIMA called for the UK government to put business growth at the centre of its reset with new Prime Minister Andy Burnham, starting with urgent tax and skills reforms.
“We’re asking government to reduce the cost of doing business, give companies long-term certainty, and unlock the skills needed to drive productivity across the UK,” Andrew Harding, FCMA, CGMA, chief executive–Management Accounting at the Association of International Certified Professional Accountants, said in a news release.
On Monday, Burnham replaced Sir Keir Starmer, who announced his intention to resign in June.
Harding said that Burnham had “an immediate opportunity to reset the relationship with business. That must start with tax and skills reform. Businesses need a competitive tax system and access to workforce training support that rewards investment, employment, and growth.”
CIMA additionally called on the government to rethink its approach to the Lifelong Learning Entitlement, extending funding to professional qualifications and Level 7 apprenticeships and increasing access routes to learning.
“Career paths are no longer linear,” Harding said. “The government has a clear opportunity to address skills shortages and support retraining of employees with a plan for lifelong learning. Without decisive action, the UK is overlooking existing talent and risks falling behind in developing the workforce needed to support business growth and economic resilience.”
CIMA is also asking for the new government to:
Lead with business tax reform. Publish a rolling five-year business tax roadmap covering corporation tax, employer taxes, capital allowances, research and development reliefs, VAT, and business rates.
Cut the cost of employment. Reduce employment-related taxes and address fiscal drag so firms can hire, train, and retain staff with confidence.
Remove barriers to growth. Review tax thresholds, VAT rules, and marginal rates that discourage small- and medium-size enterprises (SMEs) from scaling or individuals from taking on more work.
Back skills and retraining. Expand access to lifelong learning, protect Level 7 apprenticeships, and introduce a practical right to retrain.
Drive regional productivity. Create employer-led productivity and skills hubs and devolve skills planning within a clear national framework.
Help SMEs scale. Reinstate and modernise the Growth Accelerator Scheme alongside an expanded Business Growth Service that provides coaching, mentoring, and specialist advice to growing firms.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.