Press Release

Queens’ Speech: Business bears the brunt of legislative responsibility, says ACCA

6 November 2007

ACCA (the Association of Chartered Certified Accountants) warns that the legislative programme announced in the Queen’s Speech today risks expanding further the regulatory burden on businesses. While many of the new business initiatives are well-meaning, in some cases the balance of responsibility for implementing them is weighted too heavily towards businesses themselves.

·       Education and Skills Bill

Providing a legal entitlement for all adults to literacy and numeracy training is a positive step in the direction of improving the economy’s pool of skills and helping those who are currently excluded from the workforce back into work. ACCA welcomes the Government’s commitment to legislate to ensure this happens: ACCA is currently supporting financial literacy by sponsoring the Open University’s “You and Your Money” financial literacy course.

ACCA, however, is concerned that the proposed legal requirement for employers to provide education and skills training for employees should not become another burden on business, especially those SMEs who could least afford it. To work properly, this initiative needs to be supported financially by Government.

·       Climate Change Bill: Cutting carbon dioxide emissions

Creating a long-term statutory commitment to cut the UK’s emissions by 60 per cent by 2050 remains an ambitious target. ACCA says that climate change reporting must be a crucial element in the strategy to achieve carbon emission targets. Carbon reporting responsibilities must be placed on public authorities and private businesses which pose the greatest risk of environmental damage.

·       National Insurance Contributions Bill

Reforms to modernise the tax and benefit system are welcome. But the alignment of the Upper Earnings Limit (UEL) for Class 1 National Insurance Contributions (NICs) purposes must not be a pre-cursor to future tax increases.

·       Pensions Bill: A slow move towards a new pensions system

ACCA is pleased to see the remaining provisions of the Government’s pensions reform package being taken forward. However, ACCA is concerned that the new national pension savings system, in which all employees who do not currently save for a pension will be automatically  enrolled, could undermine employers’ commitment to running good occupational schemes. The Government’s long-term plans for the future of pensions will depend on persuading employers to keep faith with their occupational schemes, which are likely to continue to provide a higher level of retirement benefit, rather than to direct their staff to the new scheme.

·       Regulatory Reform Bill: Reducing burdens for business

This offers the opportunity for meaningful progress to be made with regard to business burdens imposed by local authorities. ACCA believes that it could be a step in the right direction if enforcement practices are made more consistent and effective.

In the light of the Government’s previously-announced commitment to reducing business burdens, ACCA is concerned to avoid new burdens being brought in to replace those that are being cut back. While ACCA does not oppose proposals such as those to extend work-life balance provisions, and the new initiative on pensions, it would be wrong to place too great a responsibility on employers to put these plans into action. A light regulatory touch is needed to ensure entrepreneurs and businesses are able to operate in an increasingly competitive environment.