Business Confidence Monitor parliamentary outreach

With this month’s release of the Q2 Business Confidence Monitor, ICAEW’s Policy and Public Affairs team engaged with policymakers across the political spectrum to highlight the fourth consecutive decline in business confidence. The survey results reflected ongoing concerns about the tax burden and slower than expected domestic and exports sales growth.

The team sent an overview of the results to political stakeholders, including ministers and shadow ministers, select committee officers and ICAEW members in both Houses of Parliament. As a result, the Business Confidence Monitor was mentioned several times in Parliament; Shadow Chancellor Mel Stride mentioned the survey in a debate on taxes, and Lords Sharpe and Londesborough each mentioned it during an Employment Rights Bill debate.

Chief Policy and Communications Officer Iain Wright met with Shadow Chief Secretary to the Treasury Richard Fuller in Portcullis House, where he briefed Fuller on the survey results and discussed the Conservative’s ongoing policymaking efforts.

Wright also discussed the Q2 results with Parliamentary Private Secretary to the Department for Science, Innovation and Technology Callum Anderson, along with the draft Audit and Corporate Governance Reform Bill and AI regulation. 

Engagement on financial services

July saw Chancellor Rachel Reeves deliver her set piece Mansion House speech. The Chancellor set out her plans for the financial services sector at a dinner attended by ICAEW Chair of the Board Peter Wyman.

Alongside the speech, the government published its Financial Services Growth and Competitiveness Strategy, to which ICAEW had submitted evidence in November.

The Public Affairs team shared ICAEW’s reaction to the speech and the strategy with a wide range of stakeholders across both Houses, including ministers, shadows, committee members and interested backbenchers. ICAEW welcomed measures to deliver better, simpler and more proportionate regulation, while cautioning that reforms should be undertaken in a way that maintains trust in financial institutions.

A major part of Reeves’ financial services reform plans, the Pension Schemes Bill received its second reading in the Commons this month. Ahead of the debate, the Public Affairs team circulated a briefing to parliamentarians outlining how this legislation can unlock the investment potential of pensions, protect savers and support the UK’s world-leading financial services sector to drive growth across the country. ICAEW is poised to arrange follow-up meetings with political stakeholders as the Bill progresses. 

Employment Rights Bill

ICAEW member insights on the Employment Rights Bill were cited by Shadow Business Minister Lord Sharpe in the Bill’s final committee stage session. Sharpe quoted an ICAEW member saying: “We worry businesses will start playing it too safe, choosing a ‘safe pair of hands’ over bold, innovative talent that could drive real change.”

Head of Business Simon Gray met with ICAEW member Lord Vaux to discuss members’ concerns about the effect of day-one extension of dismissal protections, alongside other issues. Lord Vaux has worked with other influential peers to table amendments intended to reduce business challenges arising from this legislation.

ICAEW continued to engage with Lords as the Bill progressed to report stage, sharing a briefing with Baroness Jones, Lord Leong and other interested peers.

Small Business Strategy response

ICAEW submitted its response to the Business and Trade Committee’s call for evidence on the Small Business Strategy. The response, written by the Public Affairs team, incorporated the views of ICAEW members from several sources, including the recent mid-tier review, the Business Confidence Monitor and regular qualitative member insights collected by the business team.

In the response, ICAEW encouraged a focus within the strategy on the three most prevalent issues inhibiting the growth of small businesses: the tax burden; the cost of, and access to, finance; and skills gaps.

ICAEW sent a summary of the response to members of parliament speaking at Business and Trade oral questions.  

Engagement on HMRC’s transformation

This month saw Iain Wright meet with Exchequer Secretary James Murray at the Treasury. Reflecting on the Minister’s first year in post, Wright raised ICAEW member concerns on Making Tax Digital and HMRC service standards. The pair discussed ICAEW’s Accelerating Growth campaign and how it can support the minister’s ambitions to improve customer service, close the tax gap and modernise HMRC.

Audit Reform and Corporate Governance Bill

The government confirmed this month that a busy legislative agenda means the draft Audit Reform and Corporate Governance Bill will not be put forward for pre-legislative scrutiny in this parliamentary session.

The Public Affairs team reached out to political stakeholders to reiterate ICAEW’s view that a statutory regulator with proportionate powers and a focus on growth would strengthen investor confidence, help prevent disorderly corporate failure and support the UK’s status as a global hub for capital and investment. The mailout emphasised that these reforms constitute urgent and necessary legislation, and warned against the loss of momentum on an initiative that is vital to unlocking growth and boosting resilience.