CIMA urges Chancellor to boost business confidence 

The Chartered Institute of Management Accountants (CIMA) has written to Chancellor Rachel Reeves highlighting members’ concerns about policy uncertainty and misalignment between risk and reward are weighing on business confidence. 

The letter, sent before final budget decisions, reflects recent feedback from business leaders and entrepreneurs throughout the UK. 

CIMA’s Secretary General Andrew Harding described three areas that have emerged from consultations: promoting a more optimistic national outlook; achieving a better distribution of risk and reward for SME owners and entrepreneurs; and preventing additional financial pressure on businesses.   

According to CIMA, many businesses report significant challenges in the current climate.  

Members identified a need for more incentives and optimism to stimulate entrepreneurship and investment.  

The organisation reported a decline in business confidence, lower investment intentions, and rising concern that the UK’s competitiveness is under threat. 

The letter stated that a constructive message in the forthcoming Autumn Budget could help restore faith in the country’s economic future, showing entrepreneurs, investors, and workers that their contributions are recognised. 

Feedback from CIMA roundtables indicated that SME owners face personal risks with limited recognition and reward for their role in employment and economic growth.  

The statement read: “The current tax and regulatory environment can feel punitive, with cliff edges and complexity that discourage ambition and investment.”  

The letter advised that budget measures should address this by recognising small business owners’ risks and offering incentives for entrepreneurial activity.  

Suggestions included setting a lower Employer National Insurance Contributions (NICs) rate for small companies and introducing targeted investment incentives. 

CIMA also asked the government to consider how policy uncertainty and complicated administration affect business sentiment. 

Another area of concern was increased employment costs linked to changes in NICs and the National Minimum Wage.  

These changes have raised wage bills across pay structures as companies work to attract and retain staff. 

The organisation requested that upcoming Budget decisions do not add further cost burdens for employers, especially SMEs, already facing challenging conditions.  

CIMA also called for “greater stability and predictability” regarding employer expenses by considering the cumulative effect of recent changes. 

Harding said: “CIMA members are calling for greater policy certainty, to reward enterprise and a cut in red tape as the formula to reboot confidence in the economy. Without decisive action in next week’s Budget, productivity will stagnate and growth will remain weak.” 

Unlock up to 35% savings on GlobalData reports

Use the code at checkout in the report store

• 20% OFF

  Buy 2 reports

  Use code:

  Bundle20

• 25% OFF

  Buy 3 reports

  Use code:

  Bundle25

• 30% OFF

  Buy 4 reports

  Use code:

  Bundle30

• 35% OFF

  Buy 5+ reports

  Use code:

  Bundle35

Valid on all reports priced $995 and above. Cannot be combined with other offers.

Still deciding what will work best for your business?

Ask our experts for help.

Enquire before buying