The accountancy body said that the budget did not contain sufficient measures to ease pressures on business expenses. Credit: 3rdtimeluckystudio/ Shutterstock.com.
The Chartered Institute of Management Accountants (CIMA) has highlighted concerns regarding the UK budget impact on business costs.
The accountancy body said that the budget did not contain sufficient measures to ease pressures on business expenses, address rising public sector costs, or strengthen investment in skills development.
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It noted that while infrastructure investment and targeted business rate relief are steps forward, overall tax increases and added “complexity” could restrict economic progress.
CIMA had previously called for actions to increase business confidence and encourage long-term investment in the UK.
The organisation recommended simplifying tax rules, supporting workforce upskilling, and reducing regulatory requirements for businesses as priorities for government consideration.
In a detailed submission to HM Treasury, CIMA outlined 27 suggestions across five main areas, all aimed at building greater economic resilience.
CIMA chief executive Andrew Harding said: “Today’s budget missed the opportunity to take bold action to address strategic problems facing the economy: spiralling public sector costs, an over complex tax system, a lack of investment in skills and growing costs being forced onto businesses operating in the UK.
“Tackling these priorities would have helped build confidence to invest, drive productivity and strengthened economic resilience. Instead, we have received an assortment of measures which fail to create a solid platform for increasing productivity, investing in skills and driving sustainable economic growth.”
Recently, CIMA sent a letter to Chancellor Rachel Reeves outlining members’ worries about ongoing policy uncertainty.
The group noted that a lack of alignment between risk and reward is having a negative effect on business confidence.
Harding described three key themes from recent discussions including promoting a more optimistic national outlook; achieving a better distribution of risk and reward for SME owners and entrepreneurs; and preventing additional financial pressure on businesses.
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