6 September 2022, London – The Chartered Institute of Management Accountants (CIMA), the world's largest professional body of management accountants, has called on the new government led by Liz Truss to focus on tackling the economic problems the country faces.
CIMA has written to the new Prime Minister to make several recommendations that could make a positive impact, including:
- Reducing the tax burden placed on businesses to alleviate the cost pressures caused by high inflation. VAT on fuel should be cut to mitigate the effect of increasing energy bills. Measures to improve the resilience of supply chains would also be helpful.
- Implementing reforms to maintain trust and confidence in corporate governance, reporting and audit. This could be achieved by introducing the legislation that was announced in the last Queen’s Speech, signalling to the business and investment community that the U.K. remains the best place for businesses to base themselves in.
- Improving productivity in the U.K. by putting a greater emphasis on skills to drive sustainable economic growth and raise living standards. CIMA has set out the challenges surrounding his issue, and some solutions to them, in its report “Tackling the UK Productivity Puzzle”.
Andrew Harding, FCMA, CGMA, Chief Executive — Management Accounting at the Association of International Certified Professional Accountants, representing AICPA & CIMA, said:
“These are challenging economic times, and the new administration will have to grapple with some difficult issues. Our members are telling us that tackling the causes of inflation should be the government’s number one priority.
“We are currently undertaking research among our members about the impact of inflation on business and their strategies for managing in this environment: this will provide insights into the necessary policies to address the problem. Early indications are that they are concerned about the resilience of U.K. supply chains and the additional price pressures that tax places on businesses during this period.”
“Over the coming months, we will continue to actively engage with the U.K. government to inform policy proposals on issues affecting our members and business.”