Practical Reforms, not more tax rises, needed in the Autumn Budget to boost growth, skills and productivity
Practical Reforms, not more tax rises, are needed in the Autumn Budget to boost growth, skills and productivity, say leading audit, tax and business advisory firm, Blick Rothenberg.
In response to the chancellor, John Healey’s, initiative inviting junior Treasury staff to share their Autumn Budget pitches, Blick Rothenberg invited colleagues across the firm, focused on those in their first five years, to share their Budget suggestions. Sean Drury, head of tax at the firm has written to the chancellor with a summary of these pitches.
Sean said: “Practical changes rather than large-scale interventions or tax rises are needed in the Autumn Budget. Colleagues felt whether it’s improving vocational pathways, encouraging investment in training, reforming outdated tax rules or supporting access to work, good policy can help unlock growth and productivity while also improving outcomes for individuals and communities.”
He added: “Perhaps the strongest theme was the importance of investing in skills and ensuring people have multiple routes into successful careers. Several submissions highlighted concerns that the current education system places too much emphasis on traditional academic achievement while undervaluing vocational and practical skills.”
Sean said: “Colleagues also called for greater incentives for employers to invest in training and development, particularly for younger workers and those looking to enter or re-enter the workforce. One proposal recommended enhanced tax relief for employer training expenditure, arguing that businesses should be encouraged to invest more heavily in developing talent and helping young people build workplace skills.”
He added: “Another suggestion focused on removing barriers that can discourage young people from low-income households from taking up employment, apprenticeships or work placements. The proposal argued that earnings from younger workers should have a reduced impact on household benefit calculations so that taking on work does not inadvertently reduce overall family income.”
Sean said: “Others suggested that with an ever-increasing proportion of young people entering the workforce coming from Tertiary education, that a credit against income tax for student loan interest, maybe capped at basic rate as this is the rate generally paid by students after leaving university, would help and reduce the perception of high interest rates on student loans.”
He added: “Tax reform was another significant area of focus. Respondents highlighted concerns that parts of the tax system have failed to keep pace with modern ways of working and modern business models. One recommendation called for a comprehensive review of the IR35 regime, arguing that the current rules create uncertainty, increase costs for businesses and can discourage the use of contingent labour. And that greater clarity and consistency between tax and employment law would benefit employers, workers and the wider economy.”
Sean said: “There was also support for reform of the business rates system. Colleagues noted that physical high street businesses often face significantly different tax burdens compared with online operators, creating distortions that can contribute to the decline of local shopping areas and community hubs. Respondents suggested exploring alternatives that better reflect today’s economy while supporting independent businesses and vibrant town centres.”
He added: “A further theme centred on reducing barriers to employment and workplace participation. One proposal suggested targeted tax relief for employees facing significant public transport costs when travelling to work.”
Sean said: “The submission noted that commuting costs in some parts of the country can consume a substantial proportion of take-home pay and argued that targeted support could help improve access to employment opportunities, encourage workplace attendance where appropriate and support economic activity in town and city centres. The proposal also highlighted potential environmental benefits where support is linked to public transport use.”
He added: “While much of the feedback focused on economic and fiscal policy, colleagues also highlighted the importance of ensuring workplaces are accessible and supportive for all employees. Example included an emphasis on autism awareness and broader understanding of learning difficulties in the workplace, including more practical and meaningful training for employers and employees. The proposal argued that improved understanding would help individuals feel better supported and enable organisations to benefit from a wider range of skills and perspectives.”
Sean said: “Across the responses, a clear message emerged: colleagues wanted to see practical reforms that improve opportunity, encourage investment and help people participate fully in work and society.”