6 July 2020
As well as navigating COVID19, the Chancellor’s financial statement on Wednesday must have an eye on the long-term and address historic productivity woes, dependencies on low-skill service sector jobs, regional imbalance and weak social mobility.
Business can help on all these fronts, but needs a helping hand from Government to take some uncertainty out of the system. For example, let’s take tax, where two years certainty on business tax and VAT would enable businesses to scenario plan and release capital for investment. Regulation is in the hands of policymakers too, and a moratorium on new business regulation would free tied-up resources to focus on recovery. Stimulus, in the form of access to grants and schemes to support innovation, battered SMEs and start-ups would be most welcome by business leaders and entrepreneurs alike.
Such measures would allow businesses to look ahead with a degree of certainty and rebuild confidence. Let’s hope the Chancellor is thinking about creating real value and economic resilience for the long-term.
Andrew Harding, FCMA, CGMA
Chief Executive — Management Accounting
The Chartered Institute of Management Accountants, part of the Association of International Certified Professional Accountants