Ahead of Andy Burnham assuming the leadership of the Labour Party and becoming UK prime minister, ICAEW asked for members’ views on his potential policies and what should be his key priorities.

The survey, to which 875 ICAEW members responded, revealed that of the policies expected from a Burnham Labour government, the most popular was the regeneration of towns, infrastructure and local economies.

Of those surveyed, 40% agreed that such an approach, which included growth funds of public and private finance, was likely to have a positive impact on their organisation.

Meanwhile, more than half (57%) agreed that tackling the burden of taxes on businesses, such as employers’ national insurance contributions, should be Burnham’s number one priority when taking office. A further 33% agreed that the complexity of the tax system should also be addressed as a priority.

More than two-fifths said that reducing the impact of regulation on organisations must be a priority, with many citing the costs and resource involved in complying with the Employment Rights Act.

“Our members see first-hand the challenges and opportunities facing businesses across the UK, and their message is clear: seize the opportunity, simplify tax and remove the barriers holding businesses back.” said Alan Vallance, ICAEW Chief Executive.

Other policy priorities backed by those surveyed included skills and workforce development (supported by 37% of respondents), and incentivising business investment (37%) reforming business rates (32%). Only 14% believed that further devolution would have a deeper impact for their organisation.

“The choices of previous administrations have left businesses facing burdens that stifle growth, diminish confidence and discourage investment,” said Vallance.

“The decisions the government takes in its first weeks and months will be critical to whether it achieves its ambitions for economic growth and prosperity.”

Since assuming office on 20 July, Burnham has appointed John Healey as Chancellor of the Exchequer and announced that VAT on domestic electricity bills will be reduced from 5% to 0% from 1 October 2026.

Building a better tax system

Aligned with members concerns over the complexity of UK taxes, ICAEW’s Tax Faculty is exploring the five key areas that must be addressed to ensure the system is fit for purpose and for the future.

“At the moment, there are five institutional pillars that don't seem to be functioning as they should, and so this work is looking at why that is and what can be done to fix them going forward,” says Ed Saltmarsh, Tax Technical Manager at ICAEW.

The project has already focused on how to improve tax policymaking in the UK, concluding that independent advisers must be involved in the process, and outlined the ways in which HMRC can be made more effective.

In the coming months the faculty will be examining the roles of the tax profession, the judiciary and digital infrastructure in rebuilding the tax system. The faculty is keen to hear from as many people as possible on how the UK can build a better tax system.

“We really want to hear from members about what they think the problems are, but more importantly, what they think the solutions are,” says Saltmarsh. “This is a collaborative project. We want to hear from everyone about how the tax system should work for them.”

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