Less than 1 in 5 accountants have positive view of UK economy

• New member survey from leading global accountancy body ACCA reveals only 14% of UK accountants have a positive outlook on the economy.
• UK SME business confidence also fell sharply in Q3, following two quarters of improvement previously.

New survey data from ACCA (the Association of Chartered Certified Accountants) today reveals that just 14% of accountants have a positive view of the UK economy.

With less than one in five accountants feeling upbeat about the UK’s economic situation, ACCA is calling on the government ahead of the budget to ensure that measures are announced to promote improved confidence in the economy and amongst its members.

The government has previously stated that getting the UK economy back working is the ‘number one priority’. However, with 86% of accountants taking either a negative or neutral view of the current economic situation, it’s clear there needs to be decisive action announced to kickstart growth and investment, as well as restore confidence amongst accountants.

In addition to this, ACCA’s Global Economic Conditions Survey (GECS) reveals that UK 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.

Lloyd Powell, head of ACCA Cymru/Wales, said: “The fact that less than a fifth of ACCA members have a positive view of the UK economy shows the stakes are high for the upcoming budget, with businesses needing to get clarity and confidence from the announcements.

“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.

“We also need the government to remove barriers that are completely under their control, such as the failing HMRC where 89% of ACCA accountants say poor service levels are seriously affecting their ability to work effectively and deliver basic compliance services to clients.”

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%).

Powell 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.”

Speaking on the fall in business confidence, Glenn Collins, head of technical and strategic engagement, ACCA UK, said: “The Chancellor has rightly warned about the tough decisions ahead, but the government should be concerned about the impact this is having on economic confidence. Despite an improvement in the capital expenditure index in the GECS survey, it remains low compared to its historic average. For the industrial strategy and upcoming budget, the government needs to present a positive approach to business to generate the investment and growth needed.”

Visit ACCA’s website for more information.