The Chartered Institute of Management Accountants (CIMA) has said the UK Government’s Spring Forecast fell short on rebuilding business confidence.

The statement came after UK Chancellor Rachel Reeves delivered the spring statement against the backdrop of increasing energy prices.

In her speech, Reeves said: “The government has restored economic stability.”

She insisted that the government’s economic plan to cut the cost of living, reduce national debt and grow the economy, is the “right one”.

She also argued that the government’s strategy is increasingly vital amid global instability, saying her plan is intended to “secure the economy against shock and protect working families”.

However, the CIMA expressed reservations about the extent to which the forecast will strengthen business sentiment or drive productivity gains.

CIMA chief executive Andrew Harding said: “The Spring Forecast identified there is still a lot of work to be done to drive meaningful growth and address productivity.

“Whilst it is a positive message to talk about stability, we were hoping to see policy stimulation linked to skills, tax reform and support for SMEs [small and medium-sized enterprises].”

Ahead of the statement, the CIMA wrote to Reeves setting out six priorities it said were needed to spur employment, investment and innovation.

These included restoring business confidence through clearer policymaking, boosting competitiveness via business tax reliefs, and creating a simpler, fairer personal tax system.

The institute also urged stronger backing for SMEs, action to close the skills gap and a coordinated national strategy to lift productivity.

Following the Spring Forecast statement, the Institute of Chartered Accountants of Scotland (ICAS) also voiced concerns, focusing on the ongoing use of frozen tax thresholds as a revenue-raising tool.

ICAS CEO Gail Boag said: “Freezing tax thresholds has become successive governments’ go-to stealth tactic to raise taxes.

“As wages rise with inflation while thresholds remain the same, more people are pushed into higher tax bands, reducing their take-home pay and leaving households with less to spend across the economy.”