AAT Public Affairs & Public Policy activities (March 2019)

Every month AAT highlights some of the key Public Affairs & Public Policy activities undertaken on behalf of our 140,000 members.

Below you will find some key highlights for March 2019.

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.

Another campaign success for AAT 

Last year the FCA consulted on reforms to the Financial Ombudsman Service. One of the areas not open for debate was the maximum compensation award limit of £150,000 for complainants.
 
AAT believed this was an oversight as it prevented many small businesses from taking their complaints to the service. So, we recommended an increase to at least £250,000, ideally more, and for the limit to be future proofed by being increased annually in line with inflation.
 
As of 1 April 2019, the £150,000 award limit for small companies and individual consumers has more than doubled to £350,000.
 
What’s more, the limit has been future proofed and will increase every year in line with inflation as recommended.
 
Great news for small businesses, great news for consumers and of course another good result for AAT.  

Women in Business

The SNP shadow Chancellor & Deputy leader in Westminster, Kirsty Blackman MP, asked a series of questions about AAT’s recommendation to expand the Women in Finance Charter to all sectors of the economy, quoting our MP survey results in the process. 
 
This follows questions in the House of Commons from Labour MP Chi Onwurah the month before.
 
In a surprising but welcome development, a group of business women in Bristol have decided to adopt our recommendation themselves rather than waiting for Government action. They have gathered the support of various private, public and not-for-profit businesses in the city including Bristol Airport and the local authority as well as legal and accountancy firms. Their own Bristol based Women in Business Charter was launched last week. 
 
AAT will continue to push for this change on a national basis…. watch this space.

Recognition, recognition, recognition…..recognition!

Last month saw significant successes with a range of organisations agreeing to recognise AAT licensed members after long running engagement activity: 

Home Office

The Home Office last month agreed to recognise AAT members in relation to any application that requires the demonstration of income from self-employment.
 
This means that the requirement to be a member of a Recognised Supervisory Body (RSB) will be extended to include AAT members. 

Home Office guidance and rules will now be updated accordingly to reflect the exemption for AAT members. 

Leek Building Society

Engagement with the Chief Executive and Chief Operating Officer of Leek Building Society has led to a change in their lending policy which now means AAT licensed accountants are recognised for the purposes of signing off mortgage certificates.

Masthaven Bank

For a long time, Masthaven was the only UK Finance (formerly British Bankers Association) member we are aware of that does not recognise AAT licensed members for the purposes of signing a mortgage certificate. They have agreed to review their policy as a matter of urgency. 

Financial Conduct Authority

Following AAT lobbying of the FCA to recognise AAT licensed accountants in relation to their dealings with High Net Worth individuals, and the consequent FCA public consultation on the issue, every respondent to the consultation supported AAT being recognised.
 
As a result, changes to the FCA Handbook, to add AAT to the list of bodies specified in CONC App 1.4.3R (2) took effect on Friday 29 March 2019.

Budget 2018

In February, the Treasury Select Committee published their response to the October 2018 Budget.

Last year, the Committee asked AAT, ICAEW, ACCA and CIOT to assess tax measures announced in Budget 2018. Because of time constraints, the Committee invited the professional bodies to comment on the measures they considered most significant rather than attempt to review all the measures announced – although AAT had a good go!

AAT views were highlighted in various parts of the report including our views on the fairness of increased personal tax allowances and in relation to IR35 (off-payroll working).

The full report can be read here.

Spring Statement 2019

As predicted, the Spring Statement contained little of direct relevance to AAT members and marks the second time that Government has stuck to its promise of having a single fiscal event (the Autumn Budget) rather than two such events each year.
 
However, the Chancellor did mention his First Time Buyers relief policy which provided yet another opportunity for AAT to highlight our far cheaper and much fairer alternative. This was widely covered by the financial and property press. 
 
AAT’s support for a review of the national minimum wage was highlighted in the national media (Daily Mirror) and personal finance press (YourMoney.com). 
 
Engagement with numerous members of the House of Lords also took place ahead of their debate on the Spring Statement at the end of the month.

Executive Pay

Last year, AAT responded to the BEIS Select Committee inquiry into Executive Pay. Their report was published last week.
 
The report references AAT evidence throughout, in relation to pay ratios; our recommendation that the difference between the highest paid and lowest paid as well as the lowest quartile be published; and that these new reporting requirements apply to all organisations with 250+ employees, not just listed companies as originally proposed.
 
AATs criticism of the ineffective nature of the public register of shareholder votes is also acknowledged in the report, as were our comments on the poor performance of most remuneration committees.
 
It’s difficult to disagree with the report’s conclusion,

There is little point in Ministers regretting levels of inequality if they are not prepared to exert any influence in reducing it.
 

 Read the full 40+ page Executive Pay report here.

Prompt Payment

Following on from a February meeting with BEIS officials, in March I met BEIS Minister Kelly Tolhurst MP and briefly discussed the issue of prompt payment reform with her. 
 
The Minister confirmed that no decisions have yet been made, that engagement with AAT had been useful and that recommendations would be made later this this year – adding the caveat that if changes required legislation this would inevitably take longer.
 
AAT will continue to press for our widely supported recommendations to be adopted.

London Branch Meeting 

Ealing Town Hall was the venue for a branch meeting where I was able to explain some of the activities being undertaken on members behalf in relation to Public Policy & Public Affairs.
 
An engaging event where members also raised concerns about anti-money laundering requirements, NICs and Income Tax as well as praising our recent efforts to save the £50 note last year! 

Parliamentary engagement

I met with Peter Dowd MP, Shadow Chief Secretary to the Treasury, for a wide-ranging discussion about tax policy and responsible business activities. 
 
Mark and I met with Gordon Marsden MP, the Shadow Skills Minister, to discuss apprenticeships and Labour Party education policy more widely.
 
Engagement with over twenty MPs and Peers took place on issues from Inheritance Tax and intergenerational fairness to overseas property investors, pay reporting and the Spring Statement.

AAT Consultations, Calls for Evidence & Inquiry responses

AAT responded to a mammoth 88 question survey relating to the proposed Deposit Return Scheme for plastic bottles and cans as well as responding to HM Treasury’s consultation on an additional Stamp Duty charge for overseas residential property investors.  

Read these responses together with hundreds of others dating back to 2014 here: AAT Public Policy responses

Other events, meetings and engagement

• Attendance at the CBI Cyber Security Working Group provided a forum to explain what steps AAT is taking to ensure our members are cyber secure and perhaps more importantly to learn what many other organisations are doing across sectors.
• Detailed discussions and subsequent email exchanges were held with Justin King, former Sainsburys CEO and now Chair of private equity house Terra Firma, in relation to AAT proposals to reform the Prompt Payment Code.
• Mark and I attended an Apprenticeships reception in Parliament which has resulted in a number of additional meetings with senior politicians to discuss apprenticeships policy.
• Other than panel members at the new APPG on inheritance tax, AAT was the only organisation to have its voice heard, convincing politicians that the Japanese inheritance model was not one the UK should be following and that abolishing the exemption for AIM listed shares was worth considering. This was well received and subsequently agreed. The group will meet three more times before producing a final report ahead of the November 2019 Budget.
• Attendance at a Resolution Foundation event focusing on the development of skills post Brexit provided useful insight in the current approach to training which sees those areas where employers complain about a lack of suitably skilled workers matching the same areas with the smallest level of employer investment.
• Eversheds hosted an Industrial Relations seminar looking at the role of trade unions in employment law but more usefully for AAT, considered the current consultation on IR35 (off-payroll working) which we will be responding to next month as well as technological changes that are affecting employers across sectors.
• A Social mobility event with over 200 social mobility professionals provided a great audience to highlight AAT’s work to widen the Women in Finance Charter.
• APPG on Apprenticeships – this month’s meeting concentrated on Diversity, Disability and Apprenticeships and examined what more needs to be done to support people with disabilities into apprenticeships.

Keep up-to-date with AAT’s Public Affairs & Policy activities on Twitter: @PhilHallAAT