Accountancy Insights

In this special edition of Insights In Focus, Iain Wright, ICAEW’s Managing Director, Reputation & Influence, is joined by Majeed Neky, Head of Policy, Levelling Up Taskforce at the Department for Levelling Up, Housing and Communities, Gill Morris, Chief Executive, Devo Connect and Sarah Longlands, Chief Executive, Centre for Local Economic Strategies.

In the interregnum between Boris Johnson’s resignation speech and a new leader taking over, it’s easy to declare an end to the Conservatives’ flagship Levelling Up policy. But Majeed and Gill are quick to tell Iain how unlikely that is. As Majeed points out: “The diagnosis of the problem is very difficult to argue with, it’s going to be a priority under a government of whatever stripe.”

Regional inequality has been a blight on the UK population and economy for over a century and generations of politicians have struggled with the issue. As the guests point out, the analysis in February’s White Paper comprehensively detailed a lot of the problem. The much harder bit, of course, is solving it. Our guests discuss the importance of devolving decision-making away from Westminster – and why that is likely to continue – the huge role that business, R&D, new jobs and new skills will play in creating a better, more balanced economy and the opportunities that will create across the country. Finally, they outline why chartered accountants have a crucial job to do.

They also discuss the biggest benefits of getting this right: the UK lags behind many of its G7 counterparts on inequality. This is a debilitating state of affairs. In some parts of the country – one of the richest in the world – life expectancy is falling. A baby born in Blackpool tomorrow is not only likely to have a considerably shorter life than a baby born tomorrow in Wokingham, but is also likely to spend twice the amount of its life in ill health. Time for us all to help build a better economy, whatever slogan is attached to it.

Guests
- Majeed Neky, Head of Policy, Levelling Up Taskforce at the Department for Levelling Up, Housing and Communities
- Gill Morris, Chief Executive, Devo Connect
- Sarah Longlands, Chief Executive, Centre for Local Economic Strategies

Host
Iain Wright, ICAEW’s Managing Director, Reputation & Influence

Links
- Levelling Up White Paper: https://www.gov.uk/government/publications/levelling-up-the-united-kingdom
- Devo Connect: https://www.devoconnect.co.uk
- Centre for Local Economic Strategies: https://cles.org.uk

Producer
Natalie Chisholm

Episode first published: 22 July 2022
Podcast recorded: 13 July 2022

In this special edition of Insights In Focus, Iain Wright, ICAEW’s Managing Director, Reputation and Influence is joined by Kitty Ussher, Chief Economist at the Institute of Directors, and Suren Thiru, ICAEW’s Director, Economies.

Talking on the morning that UK GDP figures for May were released showing an unexpected return to economic growth, Kitty and Suren both tell Iain why managers and business owners should be more confident in the economy’s medium-term health. Inflation rates are likely to come back within a manageable margin by next year, and the fundamentals of the UK economy are in better shape than many business leaders think.

As Kitty points out, “Everyone’s feeling worried at the moment. That means your competitors are also feeling worried. And so if you think the fundamentals of your business are actually okay … then you should be investing for your future because it may be that your competitors are too nervous to do so.”

Beyond advising everyone to stop worrying, the team also discuss why the labour market is so hot, how the government should help ease the staff shortages so many businesses face, and what changes to economic policy will really make a difference to the UK’s companies.

And finally, when we have a new Conservative government eight weeks from now, what would Kitty and Suren advise the next Chancellor to focus on. Would you agree?

Guests
- Kitty Ussher, Chief Economist at the Institute of Directors
- Suren Thiru, Director, Economies, ICAEW

Host
Iain Wright, Managing Director, Reputation and Influence, ICAEW

Links:
- https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/may2022
- https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/articles/whatistheproductivitypuzzle/2015-07-07

Producer
Natalie Chisholm

Episode first published: 18 July 2022
Podcast recorded: 13 July 2022

On the latest ICAEW Insights podcast, we speak to Martin Wheatcroft about rising inflation and what that means for businesses, plus capital allowances reforms.

Inflation is rising at a record pace across the world, triggered by the COVID-19 pandemic and exacerbated by a perfect storm of world events, including the war in Ukraine. We explore the impacts of this, both negative and positive, and what it might mean for public finances.

We also take a look at the government’s plans for capital allowance reforms. As the end of the superdeducton approaches, the UK government is considering reforms to capital allowances to support and encourage business investment. ICAEW has responded to the government plans. Richard Jones from ICAEW’s Tax Faculty to discuss this and the ongoing delays to R&D processing.

Links:
- https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator
- https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/may2022
- https://www.imf.org/external/pubs/ft/fandd/basics/30-inflation.htm
- https://www.bbc.co.uk/news/business-12196322
- https://www.gov.uk/government/publications/potential-reforms-to-uks-capital-allowance-regime-inviting-views/potential-reforms-to-uks-capital-allowance-regime-inviting-views
- https://www.icaew.com/insights/tax-news/2022/may-2022/treasury-invites-views-on-reforming-uk-capital-allowance-regime
- https://www.icaew.com/insights/tax-news/2022/jul-2022/icaew-calls-for-more-innovative-thinking-on-capital-allowances-reform
- https://www.icaew.com/insights/tax-news/2022/may-2022/hmrc-suspends-payment-of-some-rd-tax-credit

Host:
Philippa Lamb

Guests:
- Martin Wheatcroft, financial strategy consultant
- Richard Jones, ICAEW’s technical manager, business tax

Producer:
Natalie Chisholm

Episode first published: 14 July 2022
Podcast recorded: June 2022

In this Insights In Focus episode, we take a look at the upward trend in instances of fraud: what factors make it easier for fraudsters, and what can the profession do about it?

Instances of fraud have been on the rise since 2019, particularly during the pandemic, as economic criminals exploited new weaknesses created as a result of the rapid introduction of COVID-19 measures.

Last month, the UK government issued its feedback statement on audit and corporate governance reform, which outlined how auditors and businesses should monitor and respond to potential instances of fraud.

What’s the real picture when it comes to the prevalence of fraud? We look at the common types of fraud, the challenges of trying to combat it, the red flags that accountants might come across, and how professionals should respond.

Host:
Philippa Lamb

Guests:
- Arun Chauhan, founder of Tenet Law and Fraud Advisory Panel trustee.
- Chris Osborne, partner and head of the forensic services team, FRP.

Links:
- https://www.ukfinance.org.uk/system/files/Half-year-fraud-update-2021-FINAL.pdf
- https://www.gov.uk/government/publications/government-action-on-fraud-in-covid-support-schemes/government-action-on-fraud-in-covid-support-schemes
- https://www.actionfraud.police.uk/covid19
- https://www.icaew.com/technical/tas-helpsheets/fraud/fraud-issues-for-members-in-business
- https://www.icaew.com/technical/business/webinars-and-publications/podcasts-and-recordings/common-online-frauds-and-how-to-avoid-them
- https://www.icaew.com/insights/viewpoints-on-the-news/2022/jun-2022/ec-why-does-the-uk-have-such-a-problem-with-fraud
- https://www.icaew.com/technical/trust-and-ethics/ethics/Help-with-ethical-problems

Producer:
Natalie Chisholm

Episode published: 5 July 2022
Podcast recorded: 27 June 2022

On the latest ICAEW Insights podcast, we speak to Ed Humpherson, Director General of The Office for Statistics Regulation about the importance of data for the Levelling Up agenda.

The levelling up agenda aims to bring a better balance to the UK economy, but this is no easy undertaking, involving huge infrastructure projects and changes to everything from tax to devolution to regional funding. Ed discusses the importance of good data in moving the Levelling up agenda, where the critical gaps lie, and how statistics can be used to monitor and measure progress.

Then, ICAEW’s Head of Taxation Strategy Frank Haskew discusses the possibilities for the further devolution of tax, in light of Levelling up. He weighs up the pros and cons of what is a complex and divisive issue.

Links:
- https://www.gov.uk/government/publications/levelling-up-the-united-kingdom.
- https://www.ons.gov.uk/peoplepopulationandcommunity.
- https://osr.statisticsauthority.gov.uk/.
- https://osr.statisticsauthority.gov.uk/correspondence/ed-humpherson-to-ons-response-to-covid-19-infection-survey-statistics/.
- https://ifs.org.uk/publications/15892#:~:text=Well%2C%20the%20devolution%20deal%20means,a%20%E2%80%9CLaffer%20curve%E2%80%9D%20effect.
- https://www.instituteforgovernment.org.uk/explainers/tax-and-devolution.
- https://gov.wales/devolution-tax-process-not-fit-purpose-finance-minister.

Host:
Philippa Lamb

Guests:
- Ed Humpherson, Director General of The Office for Statistics Regulation.
- Frank Haskew, Head of Taxation Strategy, ICAEW.

Producer:
Natalie Chisholm

Episode first published: 7 June 2022
Podcast recorded: May 2022

The horrific situation in Ukraine has had wide-ranging impacts and implications across the world, not least the fight against economic crime.

In the UK, this is a huge undertaking. Will the new Economic Crime Act make a difference? Solicitor and economic crime specialist Matt Corn discusses the climate for economic crime in the UK and how the new Act will work in the context of existing UK law.

Last week, the Chancellor Rishi Sunak delivered his Spring Statement with expectations high for measures to lessen the pain of inflation, rising energy and fuel costs, and the larger cost of living crisis. Did he do enough?

Frank Haskew, Head of Taxation Strategy, Tax for ICAEW, analyses the Chancellor’s decisions and discusses the implications of high inflation.

Links:
- https://www.legislation.gov.uk/ukpga/2022/10/contents/enacted.
- https://commonslibrary.parliament.uk/research-briefings/cbp-9013/.
- https://www.politico.eu/article/uk-new-economic-crime-legislation-russia/.
- https://www.gov.uk/government/news/government-takes-landmark-steps-to-further-clamp-down-on-dirty-money.
- https://www.gov.uk/government/publications/spring-statement-2022-documents.
- https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/february2022.
- https://obr.uk/box/higher-inflation-effects-on-our-central-forecast-and-alternative-scenarios/.

Host:
Philippa Kelly

Guests:
- Matt Corn, economic crime specialist solicitor, Olliers.
- Frank Haskew, Head of Taxation Strategy, Tax, ICAEW.

Producer:
Natalie Chisholm

Episode first published: 30 March 2022
Podcast recorded: 24 March 2022

In this Insights in Focus episode, we look at what happens to your digital assets after you die.

A large proportion of our lives are now lived online. The digital footprint of the average person on the street is getting bigger and bigger. Some of that includes assets that we really value, both from an emotional and financial perspective. Journalist and author Jamie Bartlett looks to answer the question: what happens to those assets when we die, and what do we need to consider?

Catherine Mayer understands how hard it can be to deal with a loved one’s digital assets. When her husband, Andy Gill, guitarist from the band Gang Of Four, died in 2020, his death trended on Twitter. Getting hold of his digital assets and accounts has been an uphill battle. She speaks about her experiences and what she’s learned from them.

Then Elaine Kasket, Bereavement Lead at the Digital Legacy Association and author of All the Ghosts in the Machine, explains the various complexities of people’s digital afterlife. David Lyford-Tilley, ICAEW’s Technical Manager, Tech and the Profession, gives a technology and legal perspective on how to manage your digital legacy.

Host:
Jamie Bartlett, technology journalist and author

Guests:
- Catherine Mayer, activist, journalist, co-founder of Women’s Equality Party and Primadonna Festival, author, 'Good Grief: Embracing Life at a Time of Death'.
- Elaine Kasket, psychologist, Bereavement Lead at the Digital Legacy Association, author, 'All the Ghosts in the Machine: The Digital Afterlife of Your Personal Data'.
- David Lyford-Tilley, Technical Manager, Tech and the Profession.

Links:
- https://www.catherinemayer.co.uk/good-grief.
- https://www.theguardian.com/music/2022/jan/16/widow-of-gang-of-four-guitarist-andy-gill-reveals-how-she-was-ambushed-by-bereavement.
- https://www.theguardian.com/music/2020/feb/01/andy-gill-influential-guitarist-with-gang-of-four-dies-aged-64.
- https://www.hachette.co.uk/titles/elaine-kasket/all-the-ghosts-in-the-machine/9781472141897/.
- https://digitallegacyassociation.org/.
- https://www.icaew.com/technical/audit-and-assurance/faculty/audit-and-beyond/audit-and-beyond-2021/audit-and-beyond-december-2021/the-implications-of-digital-assets-for-the-accountancy-profession .

Producer:
Natalie Chisholm

Episode published: 22 March 2022
Podcast recorded: 11 March 2022

On the latest ICAEW Insights podcast, we speak to Jamie Bartlett, author and presenter about the importance of digital assets. 

These assets can include NFTs, cryptocurrencies and prizes email addresses and social media handles. What happens to them when we die? Jamie discusses how to look after your digital shadow. 

Then, Sunday Times Economics Editor and author David Smith discusses the conditions that have created the rising inflation we’re seeing in the UK. Are those conditions easing? What will this mean for the cost of living? What’s the impact of the Great Resignation? Who suffers most from high inflation?

Links to resources on topics discussed in the show:

https://myshadow.org/animation

https://www.forbes.com/sites/philippsandner/2021/08/24/digital-assets-the-future-of-capital-markets/

https://time.com/5579737/facebook-dead-living/

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/january2022

https://petapixel.com/2022/02/23/experts-warn-global-chip-shortage-likely-to-last-beyond-2022/

https://www.constructionnews.co.uk/supply-chain/how-sharply-rising-materials-prices-have-rocked-the-sector-28-02-2022/

https://www.politicshome.com/thehouse/article/major-challenges-for-supply-chains-this-year-brexit-labour-shortages

https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/articles/householdinflationandincomeinequalityintheuk/2020-11-02

Host: Philippa Kelly.
 
Guests: 

• Jamie Bartlett, journalist, presenter and author
• David Smith, Economics Editor, The Sunday Times

 
Producers: Natalie Chisholm

Episode first published: 28 February 2022
Podcast recorded: 21 February 2022

We take a look at the issue of domestic modern slavery, and how authorities and prosecutors look to build a case under the Modern Slavery Act.

Before the Modern Slavery Act came into force in 2015, criminals would get a longer sentence for moving 3kg of cocaine than for trafficking 300 people. It is a critical piece of legislation in tackling modern slavery in the UK, where it is still a significant issue.

Businesses are feeling considerable pressure as a result of rising inflation, supply chain issues, and other spiralling costs. Some struggle to find the workers they need. This could mean greater bargaining power for workers; equally it could mean greater numbers of people being coerced.

In challenging times, some people are willing to push, and breach, the limits to succeed, or simply survive. Such conditions can also heighten the risk of modern slavery, and Chartered Accountants need to be aware of the risks and know what to look out for.

Host:
Philippa Kelly, Director of Financial Services, ICAEW

Guests:
- Caroline Haughey OBE QC, barrister, Furnival Chambers, who prosecuted the very first case brought under the Modern Slavery Act;
- Laura Thomas, Senior Prevention and Partnerships Officer of the Gangmasters and Labour Abuse Authority (the GLAA); and
- Dipak Vashi, Sustainability Manager at ICAEW.

Links:
- https://www.gov.uk/government/publications/2021-uk-annual-report-on-modern-slavery/2021-uk-annual-report-on-modern-slavery-accessible-version;
- https://www.cps.gov.uk/west-midlands/news/operation-fort-three-gang-members-convicted-human-trafficking;
- https://www.gov.uk/government/collections/modern-slavery-bill;
- https://www.gla.gov.uk/media/5917/spotting-the-signs-mini-guide.pdf;
- https://www.gla.gov.uk/media/5638/march_2020_statutory_guidance_under_the_modern_slavery_ac_2015.pdf;
- https://www.icaew.com/technical/legal-and-regulatory/modern-slavery;
- https://www.icaew.com/learning-and-development/icaew-educational-films/without-question.

Producer:
Natalie Chisholm

Episode published: 15 February 2022
Podcast recorded: 8 February 2022