Chartered Accountants urge Chancellor to simplify tax and avoid further pressure on businesses

MEDIA STATEMENT - Nearly two thirds of Chartered Accountants are urging Chancellor John Healey to prioritise tax certainty and avoid further pressure on businesses, after a new ICAS survey found just 3% of members support higher taxes on businesses or employers.

The survey found that 63% of ICAS members placed tax simplification and certainty in their top three priorities to support long-term economic growth in the upcoming budget. 

Sustainable public finances were the second most selected priority, chosen by 58% of respondents, followed by reducing cost pressures on businesses at 53%. Supporting business investment and improving productivity were each chosen by 49%.

The findings also show little support for placing a greater tax burden on employers. Just 3% of respondents favoured increasing taxes paid by businesses or employers if the Chancellor needs to raise further revenue.

Support for revenue-raising measures was limited across the survey. Environmental or consumption-based taxes attracted the most support at 28%, followed by broadening the tax base as the next highest at 27%.

The calls come against a backdrop of weak confidence in the domestic economy. More than six in ten ICAS members (61%) said they were not confident in the health of the UK economy, compared with just 9% who expressed confidence.

Katie Close CA, Director of Tax at ICAS, said:

“The message from our members is clear. Businesses and taxpayers need a tax system that is simpler and more predictable, but this Budget leaves the Chancellor with limited room for manoeuvre if the Government is to meet its fiscal rules without adding further pressure to the economy.

“Frequent tax changes make it harder for businesses to plan, invest and create jobs. Holding headline rates steady offers little reassurance if the Government instead raises costs through narrower reliefs, sector-specific measures or greater administrative complexity.

“Our members recognise the need for sustainable public finances, but there is almost no appetite for further tax increases on businesses and employers. With firms already facing significant cost pressures, the Chancellor should assess the combined effect of every measure, including its impact on investment, employment and competitiveness.

"The Autumn Budget should move away from short-term tax tinkering. The test should be whether each measure forms part of a coherent, long-term strategy that simplifies the system, protects confidence and supports investment and growth.”