The Institute of Chartered Accountants in England and Wales (ICAEW) has urged Chancellor John Healey to grant enterprises operational relief to stimulate expansion, including a single-year freeze on the business rates multiplier, in the upcoming budget.
Findings from an ICAEW study, compiled for its formal submission to HM Treasury, indicated a clear mandate from its UK membership for ministers to ease overheads and establish a dependable environment for capital allocation and development.
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Among the 1,154 professionals surveyed, mitigating cost burdens emerged as the leading priority at 59%, followed closely by streamlining the taxation and regulatory framework (56%) and reviving economic activity (56%).
To ease the strain on trading organisations, the ICAEW has requested that the Chancellor present a strategy within the fiscal statement for the comprehensive overhaul or substitution of the business rates mechanism.
For immediate support, the organisation recommended introducing a 12-month freeze on the business rates multiplier during 2027/28.
In a direct correspondence to the chancellor, ICAEW CEO Alan Vallance petitioned political leaders to deliver greater predictability for the corporate sector, while acknowledging that numerous economic factors lie outside state oversight.
The organisation advised the administration to pledge against further increases to employment taxes during the current parliament, thereby providing businesses with the stability required for recruitment and investment.
The professional body also stated that HM Treasury must articulate the precise parameters of “current budget balance” within its fiscal stability framework ahead of the Budget to avert market volatility.
Enhancing the efficiency of the revenue system should be treated as a key objective, supported by targeted capital allocations to raise HMRC performance.
Additionally, broadening the scope of the Growth Guarantee Scheme was recommended to help small and medium-sized enterprises secure financing for capital projects.
According to the ICAEW, enacting these measures would assist in reviving commercial sentiment, unlocking private investment, consolidating public accounts and driving economic activity across every region of the UK.
Vallance said: “The Budget presents an important opportunity to turn ambition into practical action. Businesses have been burdened by rising costs, higher taxes, regulatory change and persistent uncertainty for far too long.
“In our view, reforming business rates is fundamental to eliminating barriers that prevent growth and investment.
“While we appreciate wholesale changes will take time, a one-year freeze in the business rates multiplier would reduce the burden on businesses immediately.”
