AAT public affairs and public policy activities: November 2020

Every month AAT highlights some of the key public affairs and public policy activities undertaken on behalf of our members.

Below you'll find some key highlights for November 2020.

If you'd 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.

Politicians take up AAT recommendations on Bounce Back Loans

During a debate on financial support during coronavirus (Covid-19), the SNP Business spokesperson and SNP Chief Whip both referenced AAT’s recommendation to write off Bounce Back Loans owed by over one million small businesses.

Given the Department for Business, Energy & Industrial Strategy (BEIS) annual report indicates up to 60% of businesses will default anyway, and 66% have been paid to small businesses, the plan is not quite as costly or radical as it may first appear.

Labour peer Lord Mendelsohn also tabled a series of Parliamentary questions about the AAT recommendation. 

Unlocking pension potential

AAT’s September 2020 submission to the Treasury Select Committee inquiry into “Tax after coronavirus” made a number of pension-related recommendations, including scrapping the pensions “triple lock” in favour of using the CPI inflation measure and ending the NICs exemption for working pensioners.

These were all ideas that caught the attention of the pensions trade press publication PensionsAge and were subsequently covered in a small number of other outlets.

Ethnicity pay reporting

Following on from the successful activity in this area in October, November saw senior politicians from the Conservative, Labour and Liberal Democrat parties all call for compulsory ethnicity pay gap reporting in AAT Comment articles.

Each referenced AAT’s positive contribution to this debate too.

We are hopeful that the government will relent and publish its plan of action before the Christmas recess. Watch this space ...

Spending review

The spending review contained announcements about additional money for reducing rough sleeping, providing another opportunity for us to highlight that stamp duty changes for overseas investors could raise even more money for the cause. AAT’s briefing on the subject was picked up by a number of Labour MPs who have offered to take the matter forward.

The government also published its response to the reform of the Retail Price Index (RPI) which closely mirrored AAT’s recommendations on the same in 2018.

Economic crime

AAT’s response to the Treasury Select Committee inquiry into economic crime has been met with enthusiastic responses from senior SNP, Liberal Democrat and Labour politicians.

The response calls for an independent review of OPBAS and compulsory membership of a professional body for those offering paid-for tax and accountancy services, and provides constructive criticism of government plans to impose a new £100 million annual economic crime levy on British business.

Parliamentary engagement

Engagement with more than a dozen parliamentarians in November centred on subjects including Bounce Back Business Loans, ethnicity pay reporting, prompt payment and economic crime.

Non-parliamentary engagement

Engagement with almost 50 external stakeholders took place in November. These included the likes of ICAEW, ACCA and CIOT as well as the Forum for Private Business, IPSE and the Tax Justice Network on issues ranging from late payment and Brexit to tax rises to pay for the economic impact of coronavirus.

AAT responses to consultations, calls for evidence and inquiries

Consultation responses on a number of topics were submitted in November.

These included a response to the Commission on Race and Ethnic Disparities call for evidence on ethnic disparities and inequalities in the UK – especially in relation to training, education and employment prospects – and to the Treasury Select Committee inquiry into Economic Crime.

Both of these responses can be viewed on the AAT public policy work page.

Other events, meetings and engagement

• Adam Harper took part in the regular HMRC Issues Overview Group (IoG) meeting for professional bodies.
• Phil Hall participated in the regular HMRC Virtual Communications Group (VCG).
• We attended the Deloitte AGM (virtually).
• We represented AAT at the All-Party Parliamentary Group on Anti-Corruption and Responsible Tax to discuss tackling the enablers of tax avoidance.
• We met twice with ICAEW and ACCA to discuss action to address late payments.