Beyond Finance

In this Insights in Focus episode, we discuss the major challenges facing UK businesses, including energy costs, recruitment and retention of staff, and wage inflation.    

Recent headlines haven’t made easy reading. A recession looms, inflation continues to rise, and sterling plunged following the ‘mini-Budget’ on 23 September. 

Understandably, businesses are nervous. ICAEW’s Business Confidence Monitor for Q3 2022 found business sentiment turning negative for the first time since late 2020. Businesses in all sectors and regions reported a ‘cost-of-doing-business’ crisis.

To explore what comes next, host Philippa Lamb is joined by Simon Gray, ICAEW Head of Business, and Katy Davies, Managing Director at manufacturer CamdenBoss.

Links
ICAEW inflation hub
https://www.icaew.com/technical/economy/inflation

ICAEW energy crisis hub
https://www.icaew.com/technical/economy/energy-crisis

ICAEW Business Confidence Monitor
https://www.icaew.com/technical/economy/economic-insight/business-confidence-monitor-national

ICAEW analysis and reaction to the mini-Budget
https://www.icaew.com/technical/Economy/fiscal-event-september-2022 

Host
Philippa Lamb

Guests
Simon Gray, Head of Business, ICAEW
Katy Davies, Managing Director, CamdenBoss

Producer
Natalie Chisholm 

Episode first published: 6 October 2022
Podcast recorded: 29 September 2022

On the latest ICAEW Insights podcast, we discuss the economic challenges facing new Prime Minister Liz Truss, and the policy commitments made during the summer’s campaign trail.

The Prime Minister has a sizeable in-tray to tackle. Stalling growth and rising inflation have led to warnings of economic stagnation for the UK. The energy crisis and industrial action this coming winter complicate matters, too.

It leaves little wiggle room for policymaking at Number 10, but the Prime Minister has promised to enact tax cuts and hinted at sweeping regulatory reforms.

Host Philippa Lamb discusses what the first 100 days of Liz Truss’s leadership may look like with ICAEW experts Suren Thiru, Iain Wright and Richard Jones.

Links:
- ICAEW: new Prime Minister urged to restore growth
https://www.icaew.com/insights/viewpoints-on-the-news/2022/sept-2022/new-prime-minister-urged-to-restore-growth
- ICAEW Energy crisis hub
https://www.icaew.com/technical/economy/energy-crisis
- ICAEW Inflation hub
https://www.icaew.com/technical/Economy/inflation

Host:
Philippa Lamb

Guests:
-Iain Wright, Managing Director, Reputation and Influence, ICAEW
- Suren Thiru, Director, Economies, ICAEW
- Richard Jones, Business Taxes Specialist, ICAEW

Producer:
Natalie Chisholm

Episode first published: 8 September 2022
Podcast recorded: 6 September 2022

In this Insights In Focus episode, we explore the multifaceted role of the insolvency professional by hearing from both practitioner and client.

Fraser Dick, managing director of Perfection Alloys, shares how the technical and emotional support of Tyrone Courtman, partner at RSM UK Restructuring Advisory, steered the business away from insolvency and towards recovery.

Tyrone goes on to explain his process for assessing the viability of businesses experiencing difficulties; and what motivated him to specialise as an insolvency professional early in his career.

It’s a timely discussion as insolvencies continue to surge, having tripled from January 2021 to March 2022, and further pressures are expected to press down upon UK businesses.

Show Links:

ICAEW insolvency hub

ICAEW Future of Insolvency insights special

ICAEW Restructuring and Insolvency Community

Host:  

Philippa Lamb

Guests:

• Tyrone Courtman, partner, RSM UK Restructuring Advisory
• Fraser Dick, managing director, Perfection Alloys

Producer:
Ed Adams

Episode first published: 31 August 2022
Podcast recorded: 25 August 2022

On the latest ICAEW Insights podcast, we explore the problems facing the aviation sector with experts Matthew Davy, director at Strategy& UK, and Eleni Kaloyirou, CEO of Hermes Airports, Cyprus.

The panel discuss the business drivers behind this summer’s flight woes, including the effects of ongoing staff shortages. Plus, we examine the long-term pressures facing the industry as passenger travel finds new equilibrium following the pandemic.

We then meet ICAEW climate change executive Sarah Reay to hear how aviation is taking its first steps towards a greener future, as well as how the Institute is supporting members on their own climate journeys.

Links:
- UK aviation: reform for take-off (House of Commons’ Transport Committee)
https://publications.parliament.uk/pa/cm5802/cmselect/cmtrans/683/report.html
- The six secrets of profitable airlines (McKinsey)
https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/the-six-secrets-of-profitable-airlines
- ICAEW Finance for the Future awards
https://www.financeforthefuture.org
- ICAEW Climate Summit
https://www.icaew.com/learning-and-development/events/icaew-climate-summit
- ICAEW Climate for SMEs
https://www.icaew.com/technical/sustainability/climate-hub/climate-for-smes
- ICAEW sustainability certificate
https://www.icaew.com/learning-and-development/academy/specialist-qualifications/icaew-sustainability-certificate

Host:
Philippa Lamb
 
Guests:
- Matthew Davy, Director, Strategy& UK (PwC)
- Eleni Kaloyirou, CEO, Hermes Airports
- Sarah Reay, Climate Change Executive, ICAEW

Producer:
Natalie Chisholm

Episode first published: 11 August 2022
Podcast recorded: 8 August 2022

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