The Institute of Chartered Accountants of Scotland (ICAS) said the UK’s Autumn Budget provided targeted relief for households and small businesses but does not set out a lasting plan for economic growth.
The body said greater certainty and simplification in the tax system were needed to build confidence in the economy.
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Commenting on the Chancellor’s maiden Budget, ICAS CEO Gail Boag 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.”
Boag explained that businesses cannot invest confidently when tax policy continues to change.
She added: “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.”
Meanwhile, Chartered Accountants Ireland said the Autumn Budget offers limited immediate support for Northern Ireland businesses.
The organisation said the measures represented a “missed opportunity” to support the region’s economy through targeted tax changes and lower costs related to labour mobility.
Chartered Accountants Ireland, which represents more than 5,900 members in Northern Ireland, called for measures reflecting the region’s particular economic circumstances.
It urged the UK Government to reduce barriers and costs linked to cross-border work, provide a route towards a competitive Northern Ireland corporation tax rate, and reform the tax system for businesses and individuals.
