Multiple small tax changes announced at today’s Autumn Budget will create complexity for accountants and businesses
Commenting on the first Budget from a Labour government for 14 years, ACCA noted that while a commitment for greater stability in public finances is welcomed, including the alignment of economic strategy, a corporate tax roadmap and spending plans, it remains to be seen whether the announcements provide a much-needed boost to business confidence.
The changes announced continued the pattern of opaque changes to taxes, such as shifts to thresholds, to boost tax take in the short term, while avoiding long-overdue reform of our tax system, which will be necessary to create a long-term approach to investment and innovation.
Gemma Gathercole, Strategic Engagement Lead for England, ACCA UK, said: ‘Clearly, public finances are challenging, and the need to increase tax revenue had been heavily trailed. However, to raise £40bn, the Chancellor has resorted to tax rises – most notably with the stiff increase in employers National Insurance – as well as a broad range of complicated tax tweaks. All these changes will impact business, with particular pressure on small businesses, especially in relation to employment costs, at a time when our latest economic conditions survey showed a decline in staff investment.
‘While the worst predictions about some business tax increases may have been tempered, especially for the very smallest businesses, the cumulative impact of these changes is likely to be complicated, making it more important than ever for businesses to seek the advice of professional accountants to refocus business plans.’
Glenn Collins, Head of Technical and Strategic Engagement, ACCA UK, added: ‘The UK tax landscape is already too complex, and today’s announcements do little to address this. At a time when we need to see a longer-term approach to our tax system, to support investment, we have seen more short-term adjustments to raise revenue, adding yet more complication. ACCA has repeatedly called for the government to commit to a programme of tax simplification and it was disappointing not to hear more about that from the Chancellor today.
'Expectations were high ahead of today’s Budget. Ultimately it has left some questions unanswered, perhaps until the next phase of the spending review in spring 2025. Whether this will provide the clarity and certainty business needs remains to be seen.’
For media enquiries, contact:
ACCA News Room
E: newsroom@accaglobal.com
Twitter/X: @ACCANews
accaglobal.com
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.
Find out more at: www.accaglobal.com