Drawing on its research, the accountancy body argues that a tax system built on simplicity is essential to rebuilding business confidence and supporting investment and urges the government to prioritise a phased programme of tax simplification, alongside wider regulatory reform.

A separate letter to the Chancellor and the Cabinet will be sent shortly.

The full letter is as follows: 

Dear Prime Minister 

On behalf of ACCA (the Association of Chartered Certified Accountants), I am writing to congratulate  you on your appointment as Prime Minister.  

ACCA is the global body for professional accountants, supporting its 257,900 members and 530,100  future members in 180 countries, helping them to develop successful careers in accounting and  business, with the professional and ethical skills required by employers. As an organisation holding a  Royal Charter, acting in the public interest is an integral element of our work. In the UK, ACCA has over  105,700 members and 71,600 future members. We have members and students in every constituency  up and down the country, in every devolved nation and mayoral strategic authority, adding value to the  local and wider UK economy. 

The accounting profession makes a significant contribution to the UK economy. Across the UK  accountants work in strategically important high-value roles, bringing a breadth of vision and expertise  to government, financial institutions, businesses, the public sector and public practice. They manage  businesses, finance teams, digital strategies, tax affairs, accounting, and investments, as well as  making sure the money flows. The accountancy profession plays a key role in delivering the UK’s  Industrial Strategy, both as a key sub-sector of ‘professional and business services’ (one of the eight  growth driving sectors) and the profession’s work underpins the critical delivery of the seven other  sectors identified. Accountancy and wider financial services are strong exports for the UK and provide  key soft power relationships with governments, NGOs and educational institutions.  

As trusted advisors to business, our members are well-placed to provide early and unique insight into  business confidence and the impact of challenging economic circumstances. They tell us that  businesses are fighting against uncertainty caused both by the impact of current and recent geopolitical  circumstances but also by economic constraints. The impact of these circumstances mean that it is  challenging for businesses to plan and forecast with any certainty. 

ACCA conducts the Global Economic Conditions Survey (GECS), jointly with the Institute of  Management Accountants (IMA), the world’s largest regular survey of accountants both in terms of the  number of respondents and the range of economic variables monitored. The survey looks at global  conditions and regional comparisons. We are publishing our Q2 2026 report this week. Our statistics  demonstrate challenging conditions for UK businesses since the 2024 Budget and concerning trends. 

UK SME business confidence has fallen dramatically since Q4 2024 and has remained subdued since,  significantly below its historical average. In this quarter, confidence has fallen to a new record low. Our  data also shows weakness in the Employment and Capital Expenditure indices, which speaks to  significant caution among firms. Elevated cost pressures remain a major problem, with over 80 per cent  of respondents reporting increased costs in Q2, well above the series average.  

While the uncertain and unpredictable global economic backdrop has undoubtedly been a factor  weighing on the sentiment of UK SMEs in recent years, domestic developments have been particularly  important. Commentary from survey respondents has unsurprisingly suggested that higher energy costs  due to the Middle East conflict were a headwind for businesses in Q2 2026, but the impact of higher  taxes on employers and rising minimum wages were mentioned too. 

Through our strong body of research, ACCA believes that the three foundations for a good tax system  are: simplicity, certainty, and stability. We welcome your commitment to set out a 10-year plan for the  country; we would support the inclusion of a vision for the tax system in that plan. As we see from the  GECs survey business confidence and business investment have been challenged in the UK. While the  government has made progress with a longer-term spending review, a single fiscal event in a year and  the publication of the industrial strategy, this has not had an impact on improving business confidence.  

Beyond that plan, ACCA believes that to nurture growth across the UK, accelerated action is needed to  strengthen and simplify the regulatory framework, with a strong focus on removing unnecessary  regulations that stifle growth. A key barrier is our tax system, which is too complex, resulting in  unintended consequences for businesses and the economy. While we urge the government to avoid any  further complexity in the system, we would like to see a long-term programme of tax review and  planned, phased simplification, starting with streamlining thresholds for smaller businesses.  Ultimately, coupled with greater responsibility for professional agents, this could reduce the tax gap,  reduce the possibility of fraud and error and ultimately reduce demand on HMRC services. We will write  to the Chancellor separately setting out the specific areas that are impacting business productivity,  incorporated small business tax gap and risk of tax loss to the exchequer.  

At the heart of what ACCA does is the belief that the accountancy profession can make the societies we  live in fairer and more transparent. Through our collaborations with governments, employers, the  international donor community and other bodies, we work together to boost international trade, grow  the investment ecosystem and make sure accountants all over the world are working to the same high  international standards. 

We look forward to continuing to work with government across a broad range of policy and support  areas, vital to producing a vibrant UK and global economy; whether our work on skills, supporting young  people into employment; supporting sustainability; implementing and regulating AI; developing the  skilled workforce of the future; encouraging international trade and business investment or rebuilding  trust in government and business including through tax and audit reform. 

I would very much welcome the opportunity to discuss with you or with your Ministers further how ACCA  can support you and how our expert-led global research can provide valuable insight to the Government  for the coming years ahead.  

Yours sincerely,
HB