The economic outlook among UK accountants is overwhelmingly bleak, with fewer than 20% expressing optimism regarding the current climate.
- A significant ACCA survey highlights that only 14% of accountants view the UK economy positively, urging government action in the forthcoming budget.
- ACCA reports a notable decline in SME business confidence, which has reached its lowest since mid-2023, indicating urgent policy intervention is required.
- Key challenges identified by accountants include diminishing economic confidence, labour shortages, and escalating management costs, which threaten stability.
- Accountancy experts emphasise the necessity for governmental incentives to stimulate business investments, necessary to drive economic revival.
The latest survey by the Association of Chartered Certified Accountants (ACCA) reveals a stark reality: merely 14% of accountants maintain a positive outlook towards the UK economy. Such findings stress the immediate need for governmental measures that can bolster confidence among accountants, which is currently at a nadir. The association explicitly calls for the upcoming budget to incorporate strategies that can rejuvenate economic growth and investments.
Further insights from the ACCA’s Global Economic Conditions Survey (GECS) indicate a sharp drop in the confidence levels of UK Small and Medium Enterprises (SMEs) over the recent quarter, marking the lowest point since the second quarter of 2023. This declining trend underscores the pressing nature of the economic challenges at hand, which demand swift governmental action.
In light of these challenges, the survey identifies the principal hurdles facing businesses today: economic confidence at 71%, skills and labour shortages at 59%, and rising management costs at 49%. Gemma Gathercole, representing ACCA UK, highlights the urgency for the budget to provide clarity and foster confidence among businesses, ensuring they have the necessary environment to thrive.
Gathercole voices appreciation for recent initiatives aimed at tackling issues such as late payments and enhancing corporate governance regulations. However, she insists that more robust measures from the government are necessary, particularly in removing obstacles within their purview, like the operational inefficiencies plaguing HMRC.
Furthermore, Gathercole stresses that accountants are eager to utilise their skills effectively for the benefit of clients and organisations, which is currently being impeded by systemic issues. She expresses hope that the Chancellor will seize the forthcoming budget as an opportunity to outline a business-oriented approach geared towards invigorating economic confidence and investment.
Conversely, Glenn Collins of ACCA UK acknowledges the government’s caution regarding difficult fiscal decisions ahead. Nevertheless, he warns of their detrimental impact on business confidence if not handled with a positive disposition towards industrial strategy. An increase in capital expenditure, though noted, remains insufficient to meet historical averages, necessitating a comprehensive governmental approach to stimulate sustainable growth.
The prevailing sentiment among accountants highlights an urgent need for decisive governmental action to restore confidence and drive economic growth in the UK.
