Institute calls for long-term growth plan

A LONG TERM economic growth plan has been called for by the ICAEW joining the chorus of voices urging the chancellor to think beyond the austerity programme.

Michael Izza, ICAEW chief executive, warned the chancellor that short-term measures could have "unintended consequences".

"The Budget is an important tool to help build business confidence in the short term, particularly for SMEs, on issues of finance and regulation.

"In the longer term, it can provide an opportunity to set out radical changes for the reform of a number of areas such as tax, regulation and skills. There is a danger though that any short-term measures to boost growth will be rushed, leading to unintended consequences for the future.”

But Izza reserved most of his concern for the UK tax code insisting it lacked "stability" and "certainty".

“As a result, it not only makes it harder for UK businesses to operate but undermines confidence in the UK as a place to invest. When a small business owner is spending hours on the phone to HMRC for example he is losing valuable time when he could be growing his company.”