ICAS: Autumn Budget offers short-term “breathing space” but lacks plan for lasting growth

MEDIA STATEMENT - Today's Autumn Budget has offered some targeted relief for households and small businesses, but long-term tax certainty and simplification are needed to grow trust in our economy, the Institute of Chartered Accountants of Scotland (ICAS) has warned. 

Commenting on the Chancellor's maiden Budget, Gail Boag, ICAS CEO, said:

"The real test of this Budget is what comes next. Targeted measures to ease energy bills, freeze business rates and encourage investment may provide much-needed relief to households and small businesses, but short-term measures are no substitute for a credible, detailed, long-term plan for growth.

"Rather than continuing with piecemeal changes, the Government must commit to fundamental structural reform of the tax system to strengthen the UK’s economic resilience and help businesses weather global economic storms. That means moving beyond short-term fixes to establish a simpler, more coherent framework that reduces complexity, provides long-term certainty and confidence to invest, innovate and create jobs. 

"Businesses can't invest with confidence when the tax system is a moving target and ICAS should not have to make the case for a simpler, more predictable tax system at every Budget.

“Fiscal discipline matters, but balancing the books can't be the only measure of success. The Government's forthcoming 10-year plan and spending review must break the cycle of annual tax tinkering and set out a credible roadmap for reform, investment and growth."