In the Spring Statement today, the Chancellor outlined the current state of play for the UK economy, giving an update on the situation following on from the Autumn Budget in October 2024. 

Businesses will welcome the Chancellor’s focus on growth in today’s statement, though there was little in the way of details about measures to boost skills, to encourage investment, open up access to affordable finance, or reduce costs for firms.  Skills, tax and regulation are the foundations of the UK economy.They require clear vision and investment to overcome years of policy changes, additional complexity and under-investment.   

Glenn Collins, Head of Technical and Strategic Engagement, ACCA, said: 'Data from UK SME finance professionals indicated confidence hit a new low last quarter. Many small firms are grappling with the onset of additional costs, including wage bills and energy increases, as well as evidence of late payment creeping upwards.  

'While today’s statement was always likely to be limited in detail given the Spending Review in June, there were some welcome announcements on additional investment in HMRC and a fund for innovation and efficiency across the public sector.   

'ACCA welcomed the announcement of additional investment in the digital capabilities of HMRC, with a focus on tackling tax evasion, however, ACCA still sees high levels of frustration with HMRC services from professional tax agents and taxpayers. 

'ACCA reiterates that HMRC investment also needs to tackle key issues such as poor customer service and lengthy response times. Without this, the tax system will not be able to cope with the demands of Making Tax Digital and the UK’s increasingly complex tax landscape meaning errors become more commonplace.'    

The Chancellor also addressed the issue of tax evasion and set out clear intentions on how this will be collected over the parliamentary term. Collecting on tax debts owed would provide a much needed boost to the economy while also cracking down on an issue which has grown in recent years. 

Jason Piper, Head of Tax and Business Law, ACCA, added: 'Increasing the proportion of the  £44 billion of tax debts owed to HMRC as of 2024 (a figure that has doubled in the last five years) to raise over £1 billion in additional gross tax revenue per year by 2029‑30 is an ambitious target. While it would greatly support the economy, in the words of the OBR, ‘there remains significant uncertainty around the yield that will be generated from these measures’. 

'Prevention is better than cure, and we would be keen to understand whether funding might be better directed at improving HMRC service levels for compliant taxpayers, to help prevent debt arising in the first place.' 

The downgrading of this year’s growth forecast is a stark reminder that it’s more pressing than ever for the government to come forward with specific plans for reform. It’ll be crucial to ensure that the development and delivery of reform isn’t waylaid by spending cuts across government departments.   

With no easy ways to boost growth, and an enormously uncertain global economic backdrop, the Chancellor needs to double-down on business-friendly measures to boost the economy’s long-term performance, including planning reforms and improved trade links with key partners. 

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About ACCA

We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.
Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries. 
Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies. 
Guided by our purpose and values, our ambition is to lead the accountancy profession for a changed world. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all. 

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