Businesses are demanding swift action from Prime Minister Andy Burnham's new Labour government, urging it to provide stability and clear economic direction following its appointment. With the sector seeking certainty in the wake of economic fluctuations, industry experts are calling for a moratorium on new business taxes and a simplification of the regulatory landscape.
According to Alan Vallance of the Institute of Chartered Accountants in England and Wales (ICAEW), businesses need early signals that will enable them to plan and invest with confidence. A recent survey by chartered accountants – who advise firms across all sectors and regions of the UK – reveals a decline in business confidence, resulting in greater caution when committing capital for long-term projects. This sentiment is reflected in the ICAEW's latest Business Confidence Monitor, which shows a further dip into negative territory.
A key demand from the business sector is a clear commitment to no further increases in business taxation. Repeated changes to tax policy have cumulatively eroded confidence, making long-term investment decisions significantly harder. Businesses indicate they can adapt to higher costs when they are understood and predictable, but uncertainty is a major impediment to growth. Such a commitment would send a powerful message that the government intends for firms to plan beyond immediate fiscal events.
Beyond taxation, simplification of regulation is another critical area for the new administration. Successive governments have introduced numerous new rules and reporting requirements over many years, creating a complex system that diverts valuable time and resources. Businesses argue that this administrative burden hinders innovation, customer focus, and expansion. They stress that simplification is not about lowering standards but about enabling businesses to concentrate on productive growth rather than bureaucratic compliance.
Despite these concerns, there are encouraging signs of potential collaboration. An ICAEW member survey reveals that 40 per cent of those polled believe government plans to regenerate towns, improve infrastructure, and stimulate local economies would positively impact their organisations. Furthermore, over a third view skills and workforce development as a priority for the new administration. However, a significant majority (57 per cent) of members surveyed identified addressing the overall tax burden on business as the government's top priority, with 43 per cent highlighting the growing weight of regulation as an issue needing urgent attention within the first 100 days.
The message for Prime Minister Burnham is clear: while businesses are supportive of many of the government's broader growth ambitions, they require a foundation of certainty and reduced burdens to truly thrive. Rebuilding confidence through predictable tax policies and streamlined regulation will be crucial in unlocking investment and driving long-term economic growth.