Spring Budget lacks detail on business support, ACCA says

The Spring Budget focus on growth should be welcomed, though there was little in the way of details about measures to boost skills, to encourage investment, open up access to affordable finance, or reduce costs for firms, ACCA said.  

In the Spring Statement on Wednesday (26 March), the Chancellor outlined the current state of play for the UK economy, giving an update on the situation following on from the Autumn Budget in October 2024. 

ACCA welcomed the announcement of additional investment in the digital capabilities of HMRC, with a focus on tackling tax evasion, However, the accountancy body still sees “high levels of frustration” with HMRC services from professional tax agents and taxpayers.

ACCA reiterated that HMRC investment also needs to tackle key issues such as poor customer service and lengthy response times. Without this, the tax system will not be able to cope with the demands of Making Tax Digital and the UK’s increasingly complex tax landscape meaning errors become more commonplace.  

Glenn Collins, head of technical and strategic engagement, ACCA, said: “Data from UK SME finance professionals indicated confidence hit a new low last quarter. Many small firms are grappling with the onset of additional costs, including wage bills and energy increases, as well as evidence of late payment creeping upwards.  

“While today’s statement was always likely to be limited in detail given the Spending Review in June, there were some welcome announcements on additional investment in HMRC and a fund for innovation and efficiency across the public sector.”    

The Chancellor also addressed the issue of tax evasion and set out clear intentions on how this will be collected over the parliamentary term. Collecting on tax debts owed would provide a much needed boost to the economy while also cracking down on an issue which has grown in recent years. 

Jason Piper, head of tax and business law, ACCA, said: “Increasing the proportion of the  £44bn of tax debts owed to HMRC as of 2024 (a figure that has doubled in the last five years) to raise over £1bn in additional gross tax revenue per year by 2029‑30 is an ambitious target. While it would greatly support the economy, in the words of the OBR, “there remains significant uncertainty around the yield that will be generated from these measures”.” 

“Prevention is better than cure, and we would be keen to understand whether funding might be better directed at improving HMRC service levels for compliant taxpayers, to help prevent debt arising in the first place.”