26 May 2022
We welcome the Chancellor’s cost of living plan announced earlier today, it will provide much-needed support to UK households who are currently struggling. However, we must not forget that businesses, in particular small and medium businesses, are also facing increased costs amid rising geopolitical tension, inflation and supply chain issues. The Government is yet to address this issue.
In addition, the Chancellor’s statement did not address some of the underlying causes of rising costs and inflation. We believe that the Government should and can do more to tackle this issue and help ease the current crisis for individuals and businesses alike.
The Chartered Institute of Management Accountants recently outlined its proposals in a letter to the Government, including ensuring better access to diverse supply chains, address skills shortage issues in supply chains and improve the regulatory environment to support innovation. We also believe that one keyway the Government can help businesses to counter inflation is by focusing on improving productivity across the U.K., introducing a U.K.-wide Productivity Strategy and creating a Productivity Commission would be a good way to start the process.
We recognise there is no silver bullet to rising inflation, but there is certainly more that can be done. We hope to see more concrete measures being taken in the Autumn Budget later this year.
Andrew Harding, FCMA, CGMA
Chief Executive — Management Accounting
The Chartered Institute of Management Accountants, part of the Association of International Certified Professional Accountants