10 Nov 2023
The Chartered Institute of Management Accountants (CIMA) has called for a 'more certain tax system' to help increase productivity and drive investment in the UK.
A report published by the CIMA in conjunction with the American Institute of Certified Public Accountants (AICPA) found that UK businesses face 'high levels of uncertainty' and an uncompetitive corporation tax rate.
The report examined the link between taxation, productivity and economic growth and found that the UK has the 'least certain tax environment' of all countries analysed by the CIMA. According to the CIMA, this makes it harder to invest in the UK, which could adversely affect the rate of productivity growth.
Commenting on the report, Andrew Harding, Chief Executive of Management Accounting at the CIMA, said: 'Tackling the poor rate of productivity growth is the most important economic issue facing the UK today. AICPA and CIMA's new research indicates that the tax system and a lack of tax certainty are contributing to the problem.
'The burden of tax and constant tinkering, coupled with the global political-economic situation, do little to grow confidence and drive investment in the UK.'
Mr Harding called on Chancellor Jeremy Hunt to use the Autumn Statement on 22 November to address issues with the UK tax system.