This week’s Budget provides the UK Government with a golden opportunity to address long term challenges and strengthen the Northern Ireland economy, professional accountancy body, ACCA has said.
With Chancellor Rachel Reeves set to unveil her first budget to Parliament on Wednesday, ACCA is calling on the government to ensure that measures are announced to promote improved confidence in the economy and especially among SMEs.
The call comes as a new survey data has revealed that just 14% of accountants have a positive view of the UK economy.
The government has previously stated that getting the economy back working is the ‘number one priority’. However, with 86% of accountants, including those in Northern Ireland, taking either a negative or neutral view of the current economic situation, it’s clear there needs to be decisive action announced to kick-start growth and investment, as well as restore confidence.
In addition to this, ACCA’s Global Economic Conditions Survey (GECS) has revealed that SME business confidence fell sharply in the last quarter, bringing it to the lowest level since Q2 2023. These results are a marked contrast to the improving economic data so far in 2024, likely reflecting business concerns about the policy and tax implications of the upcoming Budget.
Stephen Noonan, Head of ACCA Northern Ireland, said: “The fact that less than a fifth of ACCA members have a positive view of the economy shows the stakes are high for the Chancellor in the upcoming budget, with businesses needing to get clarity and confidence from the announcements.
“The economy in Northern Ireland has some unique challenges that must be addressed to ensure it is put on a sound footing. This budget provides the Chancellor with the opportunity to provide much needed certainty to the wider economy and to the SME sector in Northern Ireland.
“ACCA has welcomed recent announcements, such as tackling late payments and corporate governance regulation, and is encouraged by the early changes being introduced by HMRC. Our accountants have made it clear they are looking to the Chancellor to announce incentives for business to invest in boosting growth and productivity that we have called for constantly.”
The survey also revealed that the top three greatest challenges facing businesses and organisations today are economic confidence (71%), skills and labour shortage (59%), and management costs (49%).
Noonan added: “We know our members want to do the best job possible for their clients and organisations. ACCA hopes that the Chancellor takes the opportunity to outline business-first ways of working that will help power up the economy and encourage confidence in investment.”