London: A leading global accountancy body, the Association of Chartered Certified Accountants (ACCA), has called for significant reforms to the UK’s business regulatory environment. In response to a government consultation on reducing business red tape, ACCA emphasized the need for a streamlined approach to regulation, which it argues is essential for fostering business growth, particularly for small enterprises.
ACCA’s recommendations include a “one-minus-two” strategy, which would see two unnecessary laws removed for every new business law adopted. The accountancy body also advocated for periodic implementation reviews to ensure the continued effectiveness of regulations.
In its submission to the consultation, titled “Unlocking Business: Reform Driven by You,” ACCA highlighted the detrimental impact of the cumulative burden of regulation. The organization stressed that while individual regulations may seem manageable, their combined effect poses the greatest threat to businesses.
The accountancy body underscored the importance of regulation in maintaining the UK’s reputation as a trusted business hub. However, it also warned that outdated or ineffective regulations could lead to increased costs and unintended consequences for businesses.
ACCA identified several areas in need of regulatory modernization or review. These include simplifying the UK’s complex tax system, enacting long-overdue legislation to establish the Audit, Reporting and Governance Authority (ARGA), improving data sharing among regulators, introducing comprehensive AI legislation, and reviewing the 2018 data protection laws.
Joe Fitzsimons, Regional Lead Policy and Insights at ACCA UK, noted that members of the organization span a wide range of sectors and sizes, from micro-businesses to global corporations. He emphasized that ACCA members, as trusted advisors, witness firsthand how the cumulative burden of regulation undermines business confidence and leads to costly compliance errors.
Fitzsimons stated that the government has a unique opportunity to address these long-standing issues and create a regulatory framework that supports business growth.