06/09/2025 | Press release | Distributed by Public on 06/09/2025 02:27
9 June 2025, London - Ahead of the 2025 Spending Review on 11 June 2025, The Chartered Institute of Management Accountants (CIMA) has outlined its key recommendations to boost UK productivity and growth in a challenging environment.
Andrew Harding, FCMA, CGMA, Chief Executive - Management Accounting at The Chartered Institute of Management Accountants, said:
"With the UK still lagging in productivity compared to its peers, contending with widening skills gaps, and navigating a challenging global economic environment, this Spending Review is crucial. The Chancellor must set out the mid- and long-term plans to help UK businesses drive the growth the economy urgently needs.
"Our proposals, focused on removing tax cliff edges, increasing investment, enhancing skills and productivity, have been designed to help UK businesses expand and grow, and support the government's core mission of delivering economic growth."
CIMA's recommendations for the 2025 Spending Review include:
Introducing a productivity strategy and creating a dedicated Productivity Commission similar to the ones in New Zealand and Australia.
Addressing fiscal drag, which according to AICPA & CIMA research, limits productivity by pushing people into higher tax bands as a result of inflation.
Enhancing productivity measurement in the public sector. AICPA & CIMA research shows that the public sector currently lags behind the private sector when it comes to tracking and improving productivity.
Extending Full Capital Expensing to include second-hand equipment, enabling more businesses, particularly SMEs, to access the scheme.
Creating an SME Investment ISA to encourage investment in, and support the growth, of UK SMEs.
Reintroducing the Growth Accelerator Scheme for SMEs.
Read the full recommendations here.