CIMA calls on new UK government to address key economic problems

The Chartered Institute of Management Accountants (CIMA) 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 making several recommendations that could make a positive impact on the accountancy sector, including reducing the tax burden placed on businesses to alleviate the cost pressures caused by high inflation and to cut VAT on fuel to mitigate the effect of increasing energy bills.

It also focused on implementing reforms to maintain trust and confidence in corporate governance, reporting and audit by introducing new legislation, signalling to the business and investment community that the U.K. remains the best place for businesses to base themselves.

As well as improving productivity in the U.K. by putting a greater emphasis on skills to drive sustainable economic growth and raise living standards. 

Andrew Harding, CEO of Management Accounting at the Association of International Certified Professional Accountants, representing 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.”

He added: “Over the coming months, we will continue to actively engage with the UK government to inform policy proposals on issues affecting our members and business.”