The Institute of Chartered Accountants in England and Wales (ICAEW) has made a submission to His Majesty’s Treasury, suggesting the necessity for the UK government to accelerate efforts to realise savings and bolster growth.
The recommendations are aimed at informing the upcoming Spending Review for the financial years 2026-27 to 2028-29, and 2029-2030 for capital investments.
ICAEW has also discussed the introduction of three-year spending reviews updated biennially and four-year capital budgets.
These changes are expected to enhance the management of public funds at a time when financial efficiency is paramount, it said.
ICAEW Public Sector and Taxation director Alison Ring said: “Four-year capital budgets in the Spending Review will provide forward-funding certainty that public sector capital programmes need if they are to be delivered more effectively and at a lower cost.”
The submission outlines several principles that ICAEW believes should be integrated into the Spending Review, including a digital-first approach to public services, upfront investment for efficiency, and a focus on prevention.
The institute also advocates for clear strategic priorities beyond the government’s five missions, certainty in core capital investment programmes, reform in local government funding, and a push for higher-level apprenticeships to cultivate necessary skills within the UK.
Additionally, ICAEW suggests planning reforms to expedite infrastructure projects such as East West Rail and calls for more sustainable financial models for public services that rely on subsidies.
ICAEW highlights the importance of effective financial management in delivering savings and driving growth.
This includes aligning spending reviews with annual budgets, parliamentary funding, performance monitoring, and financial reporting.
The body also recommends increased delegated authority to foster innovation and accountability, as well as a portfolio approach to managing capital project variances and improved capabilities for fraud prevention and detection.
These recommendations follow ICAEW’s review last month of the European Commission’s ‘Omnibus’ proposals, which it viewed as a step back from initial ambitions for sustainability reporting.
