CIMA urges tax & skills reset to back business growth

The Chartered Institute of Management Accountants has urged Prime Minister Andy Burnham's government to make tax and skills reform central to a broader reset with business.

It called on ministers to move quickly to cut the cost of doing business, improve certainty for employers and widen access to workforce training. Reform, it argued, is needed across business taxation, employment taxes, skills policy and regional productivity planning.

CIMA's proposals include a rolling five-year business tax roadmap covering corporation tax, employer taxes, capital allowances, research and development reliefs, VAT and business rates. It also wants the government to review tax thresholds and marginal rates that it says discourage smaller companies from expanding and deter people from taking on more work.

Another key request is a reduction in employment-related taxes, which CIMA argues would help firms recruit, train and retain staff with greater confidence.

The institute also called for ministers to revisit skills funding. It wants the Lifelong Learning Entitlement to cover professional qualifications and Level 7 apprenticeships, and is seeking a practical right to retrain as jobs change.

Andrew Harding, Chief Executive of The Chartered Institute of Management Accountants, set out the organisation's position in direct terms.

"The new Prime Minister has an immediate opportunity to reset the relationship with business. That must start with tax and skills reform. Businesses need a competitive tax system and access to workforce training support that rewards investment, employment and growth," Harding said.

The intervention comes as business groups continue to press for clearer economic policy after the change in leadership. CIMA said stable policy settings are needed to support investment and productivity across the UK.

Its tax agenda goes beyond headline rates. The institute said a published five-year roadmap would give companies longer-term visibility, helping them make investment decisions with more confidence and reducing uncertainty over future tax treatment.

For smaller businesses, CIMA wants ministers to revive support aimed at expansion. It has called for the reinstatement and modernisation of the Growth Accelerator Scheme, alongside a broader Business Growth Service offering coaching, mentoring and specialist advice to firms seeking to scale.

Skills focus

On workforce policy, the organisation argued that current learning routes do not reflect how careers now develop. Ministers, it said, should widen access to learning throughout working life rather than focus narrowly on traditional education pathways.

The body is also urging protection for Level 7 apprenticeships, particularly for younger learners and for professions linked to the industrial strategy, including professional and financial services. In its view, removing support for those routes would restrict progression at a time when employers are trying to fill higher-skill roles.

Harding linked the issue to changing workplace demands.

"We're asking government to reduce the cost of doing business, give companies long-term certainty and unlock the skills needed to drive productivity across the UK," he said.

CIMA also said the government should support regional growth through employer-led Productivity & Skills Hubs in every Strategic Authority. These hubs would bring together businesses, training providers, colleges, universities and local government to coordinate workforce planning and productivity improvements.

The institute wants more responsibility for post-16 skills planning to be devolved within a national framework. It said that approach would allow regions to tailor training to local labour market needs while avoiding fragmentation.

Broader reforms

Alongside tax and skills measures, CIMA called for a UK Productivity Commission and a long-term productivity strategy to align policy on skills, investment, innovation and infrastructure. The proposal reflects wider concern among employers that productivity growth has remained weak and policy has often lacked continuity.

The group's recommendations also touch on the design of the Lifelong Learning Entitlement. It said professional qualifications delivered by recognised professional bodies should be eligible for funding without facing duplicate regulatory hurdles.

That point is particularly relevant for accountancy and finance training, where professional qualifications are a major route into employment and advancement. CIMA said a broader funding model would widen access to learning and help firms develop talent already in the workforce.

Harding said the pace of technological change had made the issue more pressing.

"Career paths are no longer linear, and businesses increasingly need employees with critical thinking, strategic insight and the ability to adapt as technology and AI reshape the workplace. The government has a clear opportunity to address skills shortages and support retraining of employees with a plan for lifelong learning. Without decisive action, the UK is overlooking existing talent and risks falling behind in developing the workforce needed to support business growth and economic resilience," he said.