AAT Public Affairs & Public Policy activities: February 2022

Every month AAT summarises some of the key Public Affairs & Public Policy activities undertaken on behalf of our members.

Below you will find some key highlights for February 2022.

If you would like any further information about any of these issues, please contact Phil Hall, AAT Head of Public Affairs & Public Policy via twitter or via email.

AAT leads business groups in urging reform of digital programme

AAT organised and issued a very powerful letter to the Department for Business, Energy and Industrial Strategy (BEIS) signed by AAT, ACCA, the Forum for Private Business, Coadec and The Entrepreneurs Network, setting out various problems (and potential solutions) for the government's new Help to Grow: Digital scheme for small businesses.

We asked how small businesses can improve their digital skills when government excludes over 90% from the scheme, offers less than a handful of software options from the many hundreds that are available and dictates that funding can only be spent on licensing i.e. the smallest costs involved in digital adoption.

The letter was publicly backed by senior professionals at Microsoft, BamBoomCloud (previously Cooper Parry IT) and IFAC. It was also welcomed by a range of Politicians, Chief Executives and business stakeholders as well as receiving some media attention in the trade press.

In addition, AAT’s specific criticisms about the separate Help to Grow: Management scheme were referenced in the Financial Times last month.

AAT Covid fraud views repeated by Public Accounts Committee

Last year AAT submitted a response to the Public Accounts Committee inquiry into HMRC Performance, which was referenced in the PAC report published last month. The report stated,

“The Association of Accounting Technicians submitted evidence to us in which it said HMRC’s current target for recoveries somewhat lacks ambition and HMRC needs do more to recover losses from errors and fraudulent payments.”

The PAC went on to support AAT’s findings using almost identical wording in criticising “HMRC’s unambitious plans”. As well as being discussed in Parliament, the issue was covered in City AM and some niche finance trade media.

Late payments

AAT’s recent response to a government consultation on late payment practices was shared with over 600 MPs, generating a number of positive responses. One MP, Labour’s Debbie Abrahams, commented on the issue to some of her local press and the wider business media. In addition, the response secured a meeting with the new Small Business Commissioner, Liz Barclay.

Student Finance

On 24 February, the Secretary of State for Education, Nadhim Zahawi MP, outlined plans to extend the Student Loan repayment period from 30 to 40 years whilst reducing the repayment threshold to £25,000. These changes, billed by the government as a "better deal for the student and the taxpayer", will more than double repayments for many students. Higher Education is a great route to employment for some but it can be an expensive option and the changes made today will make it even less affordable for many. AAT’s views on the proposals were partially covered in FE News and received considerable attention on social media (LinkedIn).

Careers advice questions

Andrew Rosindell MP (Conservative) and Lord Taylor of Warwick (crossbencher) both asked Parliamentary Questions of government in relation to AAT’s recent research about careers advice and the ongoing failure to ensure school pupils receive sufficient information about alternatives to university education.

Parliamentary engagement

Engagement with 12 Parliamentarians took place in February, relating to a range of issues including Help to Grow: Digital and Late Payments to small businesses.

Non-Parliamentary engagement

Engagement with 60 external stakeholders took place in February 2022. These included academics from Liverpool John Moores University and the Head of Sustainability at Anheuser-Busch InBev, the world’s largest brewer, to discuss late payment practices, as well as other tax and accountancy professional bodies, business representative groups including the FSB and CBI and the Office for Tax Simplification on a variety of issues.

AAT consultations, calls for evidence & inquiry responses

A hard hitting response to the BEIS Statutory Review of Payment Practice Reporting Regulations was submitted and together with most of AAT’s submissions, is available on the AAT policy page.

Other meetings, events and engagements

• Adam Harper attended the regular Representative Bodies Steering Group (RBSG) with HMRC and Phil attended an RBSG sub group on the issue of Self-Assessment tax deadlines.
• Phil participated in the regular HMRC Virtual Communications Group (VCG).
• Phil represented AAT at the regular Trade Association Forum hosted by the Federation of Small Businesses.
• Phil represented AAT at the HMRC Counter Avoidance Forum.
• Phil represented AAT members at the CBI Business Rates Working Group.
• Phil met with the new Small Business Commissioner, Liz Barclay to discuss a range of late payment issues and how AAT can work with the Commissioner to improve payment practices.
• Phil attended a roundtable with George Parker, Political Editor, The Financial Times, Katy Balls, Deputy Political Editor, The Spectator and Harry Cole, Political Editor, The Sun to discuss the political situation in the UK.

If you would like more information about any of the above, public affairs activities in general, previous copies of the monthly round-up or think I might be able to help your work in any way, please don’t hesitate to get in touch.

Keep up to date with AAT’s Public Affairs activities on Twitter at: @PhilHall2021