New research from leading global accountancy body, ACCA (Association of Chartered Certified Accountants) reveals a stark picture of declining economic confidence, mounting pressures on business, and deep concerns about the effectiveness of HMRC services as the Government prepares for the Budget.
In a UK wide survey of finance professionals, only six percent are feeling optimistic or did not have a view about the economy and almost two-thirds (64%) believe the outlook is negative.
The greatest challenges facing businesses today include employment taxes (60%), spiralling costs (25%) and regulatory burden (13%).
When asked what would best help to boost growth, around a third (30%) of respondents called for reducing costs on business – far ahead of any other option – while 37% said the Government’s top Budget priority should be growing the economy.
Calls for clarity are also growing, with nearly a quarter (23%) demanding long-term certainty on tax and spending.
Meanwhile, accountants warn that HMRC’s poor service levels are directly damaging productivity. Well over half (57%) say HMRC inefficiencies are having a negative impact on their organisation or their clients – a persistent problem over multiple surveys carried out since October 2023.
Reduced call waiting times (20%), improved communication (18%), and priority access for professional agents (11%) were highlighted as the most urgent areas for reform.
On taxation, businesses say employment taxes are the single biggest barrier to growth, with 60% identifying them as the most damaging.
Gemma Gathercole, Strategic Engagement Lead for England, ACCA UK, said:
“These results should be a wake up call for the Chancellor. 94% lack confidence in the economy. More than half say HMRC inefficiencies are having a negative impact on their organisation or their clients.
“As accountants, we are at the frontline of business and our message for the upcoming Budget is clear: cut business costs or cut growth.”
