UK politicians and regulators need to take a holistic approach to business regulation, according to a leading global accountancy body.
Responding to a government consultation on business red tape, ACCA (the Association of Chartered Certified Accountants) warns that the cumulative burden of regulation poses the greatest threat for business – especially small enterprises.
The accountancy body also called for a ‘one-minus-two’ approach whereby for every business law adopted, two unnecessary laws are removed. Period implementation reviews would ensure regulation remained effective.
In its response to Unlocking business: Reform driven by you ACCA says while the consultation asked for evidence on individual regulations from the experience of its members it was the cumulative impact which caused the most overall harm.
Glenn Collins, Head of Technical and Strategic Engagement, ACCA UK, said:
“ACCA recognise the vital role regulation plays in underpinning the UK’s reputation as a trusted place to do business. A strong, modern, institutional, and legislative framework is key to ensuring the UK reaches its full potential.
“Regulation can build confidence through transparency and trust. However when regulation is outdated or ineffective, the resulting costs, burdens and unintended consequences must be addressed.’
ACCA highlights regulatory issues that would benefit from modernisation or a review into their effectiveness. In particular it noted the complexity of the UK tax system; the need to finally enact long overdue legislation to establish the Audit, Reporting and Governance Authority (ARGA); the need for data sharing among regulators to reduce business giving the same information endlessly; the need for the UK to introduce world-leading AI legislation and an update to 2018 data protection laws which would benefit from a review.
Lloyd Powell, Head of ACCA Cymru/Wales, said:
“ACCA members span every sector and size of organisation, from micro-businesses to global firms. As trusted advisors to business, they see first-hand how the cumulative burden of regulation erodes confidence, creates complexity and drives costly compliance errors.”
The government now has an opportunity to tackle the long-standing problem of poor regulation and deliver a framework that supports business growth.
Read the ACCA response here Read the government consultation here.
