The ICAEW Presents Its First Manifesto For The General Election'

Amanda Banks, Tax-news.com, London

27 March 2001

The Institute of Chartered Accountants in England and Wales (ICAEW) has decided to become involved in a UK general election for the first time by publishing its 'Manifesto for Business' recommending 'five steps to greater prosperity' to the incoming government which it says tackle regulations hampering the growth of a dynamic entrepreneurial economy and the hidden tax on businesses and consumers imposed by rampant fraud.

The five priorities identified by the Institute are the simplification of the tax system, the stimulation of enterprise through smart regulation, improved co-ordination of the regional economy, boosting the campaign against fraud and the introduction of agreed benchmarks for valuing human capital.

In an ICAEW press release Graham Ward, President of the Institute of Chartered Accountants, says: 'Securing a competitive, stable and prosperous economy is dependent on encouraging enterprise, rather than swamping business with excessive regulation. Clamping down on fraud, simplifying the tax system, cultivating and valuing the skills of the workforce, and tackling the problems of regional inequality should be priorities for an incoming Government.'

In terms of 'encouraging enterprise through smarter regulation' the Institute argues that despite the political effort expended on reducing the flow of new regulations, the stream continues largely unabated at around 3,500 Statutory Instruments a year. The ICAEW recommends the adoption of five principles to reduce the regulatory burden on business such as: high statutory hurdles for new regulations, rigorous independent assessment of regulatory proposals, a greater role for Parliamentary scrutiny, a consistent approach to exemptions for small firms and structural reforms in Whitehall and local government to deliver a more joined up approach to regulation.

In its Manifesto the Institute estimates that sums lost through fraud can range from £5 billion to around £12 billion per year, the latter figure (from the Association of British Insurers) representing at least a third of the annual cost of all crime. This 'hidden tax' increases the cost of goods and services, impoverishes small as well as corporate shareholders, jeopardises jobs and damages development, innovation and investment.

ICAEW research has identified policy initiatives aimed at tackling fraud head on including mandating individual police forces to introduce their own anti-fraud strategies and creating a National Anti-Fraud Commission to bring together representatives of business and the professions.

Mr Ward stated: 'With real political commitment, implementation of our proposals will fortify the economy, increase UK competitiveness and generate greater prosperity. That is why we are challenging political parties across the spectrum to address the policy priorities in our Manifesto as a matter of urgency.'

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