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Backing business-led growth

How the government can enable growth

Drawing on members expertise and our research into business confidence, ICAEW offers policymakers advice on how to tackle the barriers to growth.

Barriers to growth and ICAEW solutions

What is preventing growth in the UK?

The UK is at an economic inflection point. Business confidence is fragile, investment is stalling, and everyday decisions are being slowed by complexity, cost and uncertainty. Policymakers talk about growth - but the businesses trying to deliver it are being held back.
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Too much uncertainty

Businesses need clarity for confidence

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Too difficult

Tackle the administrative burden of running a business

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Too expensive

Revisit VAT and business rates

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The key barriers to growth

Businesses face too much uncertainty

Frequent rule changes and mixed messages on tax make planning impossible for businesses. Volatile geopolitics, cyber threats, and climate uncertainty add to the chill. Government initiatives come and go, leaving firms wary of long-term investment
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It's too difficult to do business

Complex VAT rules create costly disputes and threshold cliff-edges act as a hidden tax on innovation and growth. Meanwhile HMRC service standards result in hours wasted on the phone and company accounts requirements result in duplication of effort.
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It's too expensive to do business

The UK ongoing freeze to the VAT threshold is pushing more productive businesses above it, business rates are penalising investment and overlapping rules make compliance costly and innovation harder.
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Latest developments

UK economic growth needs to be led by business Opening remarks from Alan Vallance, ICAEW Chief Executive, at Chartered Accountants Hall on 9 September 2025, when ICAEW hosted Kemi Badenoch MP - Leader of the Opposition - for a wide-ranging discussion with business leaders and ICAEW members.

Kemi Badenoch speaks to ICAEW about growth

On 9 September 2025, ICAEW hosted Kemi Badenoch MP - Leader of the Opposition - for a wide-ranging discussion which covered her vision for a less risk averse, lower tax and regulation environment for UK businesses.
Alan Vallance, ICAEW Chief Executive
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Image of Victoria Street and West Bow in Edinburgh, on a sunny day. Shoppers are in the street and bunting hangs between the shops.
An open letter and brown envelope from HM Revenue & Customs HMRC
A photograph of Emma Jones CBE, the government’s newly appointed Small Business Commissioner
Too much uncertainty

NICs for LLPs: a policy that risks shrinking the tax base, not growing it

This week I wrote to the Chancellor of the Exchequer to express ICAEW’s concern about reports that the government may apply a charge equivalent to employer national insurance contributions (NICs) to members of limited liability partnerships (LLPs).
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Too much uncertainty

Business confidence collapse sparks push for Autumn Budget relief

UK business confidence drops to new three-year low amid tax and trade turmoil, with exporters’ sentiment into negative territory for first time since 2022, finds ICAEW survey.
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Too difficult

New in the M&S Foodhall: a VAT dilemma

M&S’s new Strawberries & Creme Sandwich, inspired by the viral Japanese fruit sando, is dividing opinions on taste, and VAT treatment. We consider if the latest summer must-have is a sandwich, confectionery or a cake and what this means for VAT.
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Too difficult

The inside track from HMRC

In this special episode Jonathan Athow, HMRC's Director General for Customer Strategy and Tax Design, explains how the organisation intends to reform the tax system, improve service and close the tax gap.
Listen
Too expensive

Bonus episode: How to tackle late payments

ICAEW’s Iain Wright talks with the government's newly appointed Small Business Commissioner Emma Jones CBE.
Listen now

Related resources

Campaign
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How to fix VAT

ICAEW explores the challenges and opportunities offered in reimagining VAT and its application. Read about the history of VA and the potential of digitalisation.

Browse resources
Research
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UK Business Confidence

ICAEW's Business Confidence Monitor is one of the largest and most comprehensive quarterly surveys of business conditions and the health of the UK economy.

Read the latest findings
Campaign
Help us improve regulation

Good regulation is essential for trust in business. The Better Regulation project aims to help ICAEW and its members understand how the UK’s regulatory regime might be improved and to use our insights to call for change.

Find out more