On 30 October, Chancellor of the Exchequer Rachel Reeves will deliver the Autumn Budget, together with a full fiscal statement from the Office of Budget Responsibility (OBR).
The Association of International Accountants urges the Chancellor to prioritise policies that will stimulate economic growth and benefit SMEs and SMPs. We believe that by supporting these vital businesses, the UK can unlock its full economic potential.
Furthermore, AIA echoes calls for a growth-focused Budget. Long-term fiscal planning, a comprehensive review of the tax system, and significant investment in skills and green technologies are crucial for the UK’s ongoing economic prosperity.
Between 2016 and 2023 the value of the UK’s financial and related professional services exports increased by 56%, however there is more potential for growth to be unlocked within this sector(1). Related professional services, including accountancy, represented 38% of this growth with the US, the EU, and Switzerland being main drivers of growth. Within those related professional services, the key important of small and medium-sized practices, and the small and medium-sized enterprises they provide services for cannot be underestimated.
AIA considers that it remains vital that the upcoming UK budget be designed to empower SMEs and SMPs, recognising their crucial role as economic drivers. By implementing policies that foster growth and innovation, the UK government can unlock the full potential of these businesses. This includes measures such as:
Enhanced access to finance: Expanding access to affordable credit and financing can enable SMEs and SMPs to scale their operations, create jobs, and drive economic recovery.
Investment in skills and training: Supporting initiatives that upskill the workforce can equip SMEs and SMPs with the necessary talent to compete in a globalized economy.
Reduced administrative burdens: Streamlining regulations and simplifying tax systems can significantly reduce the administrative costs for SMEs and SMPs, freeing up resources for growth and investment.
Research and development incentives: Encouraging innovation – for example through green jobs and investment in emerging technology such as AI – through tax breaks and grants can stimulate research and development activities within SMEs and SMPs, leading to the development of new products and services and further growth.
SMPs play an invaluable role in society by ensuring sound financial management, transparency and integrity of companies as well as by contributing to tax and regulatory compliance. Furthermore, accountants adhere to strict ethical standards, which include maintaining objectivity, confidentiality, and integrity. The work of accountants helps to build trust and confidence in the information on which capital markets rely, benefiting both the organisations they serve and the broader public interest.
By implementing these measures, the UK Government can help SMEs and SMPs to take advantage of the growing export opportunities in the financial and professional services sector. This will contribute to economic growth and job creation in the UK. By prioritising the needs of SMEs and SMPs, the UK government can create a more vibrant and resilient economy.
David Potts, AIA Director of Policy & Regulation, said “Overall AIA echoes the call of many organisations for a growth-focused Budget. The Chancellor should prioritise policies that will stimulate economic growth and benefit SMEs and SMPs. We believe that by supporting these vital businesses, the UK can unlock its full economic potential.”
“Overall AIA echoes the call of many organisations for a growth-focused Budget. The Chancellor should prioritise policies that will stimulate economic growth and benefit SMEs and SMPs. We believe that by supporting these vital businesses, the UK can unlock its full economic potential.”
David Potts, Director of Policy & Regulation, AIA
