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The Association of Chartered Certified Accountants (ACCA) has urged politicians and regulators to take a more holistic approach to business regulation, with a focus on reducing the cumulative burden faced by companies – particularly small enterprises.
The call comes in response to the government consultation ‘Unlocking business: Reform driven by you’, which seeks views on reducing red tape and improving the regulatory environment.
In its submission, ACCA highlighted several areas where it believes reform or modernisation is overdue. These include the complexity of the UK tax system, delays in establishing the Audit, Reporting and Governance Authority (ARGA), and limited data sharing between regulators, which it said forces businesses to submit the same information multiple times.
It also called for the UK to introduce what it described as world-leading legislation on artificial intelligence, alongside a review of data protection laws introduced in 2018 to ensure they remain fit for purpose.
While individual regulations may appear manageable in isolation, the professional body finds that their combined impact creates complexity, uncertainty and higher compliance costs for businesses. In light of this, it argued that this cumulative effect poses a greater risk to growth than any single rule.
As such, ACCA proposes a “one-minus-two” approach to law-making, under which the introduction of each new business regulation would be matched by the removal of two that are no longer necessary. It said the regular post-implementation reviews would help ensure regulation remains effective and proportionate.
Glenn Collins, head of technical and strategic engagement at ACCA UK, said: “ACCA recognises the vital role regulation plays in underpinning the UK’s reputation as a trusted place to do business. A strong, modern, institutional, and legislative framework is key to ensuring the UK reaches its full potential.
“Regulation can build confidence through transparency and trust. However when regulation is outdated or ineffective, the resulting costs, burdens and unintended consequences must be addressed.”
Joe Fitzsimons, regional lead for policy and insights at ACCA UK, added: “ACCA members span every sector and size of organisation, from micro-businesses to global firms. As trusted advisors to business, they see first-hand how the cumulative burden of regulation erodes confidence, creates complexity and drives costly compliance errors.”
