AAT Public Affairs & Public Policy activities (September 2018)

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 September 2018.

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.

Parliamentary engagment

Parliament continues to enjoy a lengthy break but it’s not in our vocabulary at AAT. Over a dozen MPs from all parties have been in touch to let us know their thoughts on our “Alternatives to tax rises” report published on 4 September (see below) and we have raised the issue of Stamp Duty with Lord Kennedy (Labour) and Lord Truscott (Labour) as well as the Fourth Industrial Revolution and its impact on skills (Emma Hardy MP, Labour) as well as HMRC office closures with the SNP’s Dr Lisa Cameron.

AAT Alternatives to tax rises

Policymakers of all parties want to invest more money in important public services like health and education but usually rely on increased taxes or increased borrowing as the only way of paying for this.

AAT suggested an alternative, calling for tax reform rather than tax rises and detailing £27bn of annual savings that could be made. These recommendations were explained in our Time for Change: AAT alternatives to tax rises report published on 4 September 2018.

The report was very well received with positive comments from politicians representing Conservative, Labour, Liberal Democrat, SNP, Plaid Cymru and the Green parties – although it’s important to note we received one negative response too!

The report was also covered favourably in the accountancy press, by the BBC and TalkRadio as well as regional radio station BBC Radio Humberside.

As well as encouraging responses from the likes of KPMG, RSM and Grant Thornton, more than 200 independent high street accountants also picked up the story and covered it on the news sections of their web sites.

Cyber Security

Attendance at a CBI Cyber Security conference enabled us to question the likes of Ciaran Martin, Chief Executive of the National Cyber Security Centre (NCSC), our tweet about which received over 10,000 views in less than 24 hours.

The event also provided an insight into why boards often fail to listen on cyber security, the consequences of security breaches and why smart buildings and smart homes are often anything but (including a practical lesson on hacking a smart kettle to gain access to email accounts).

Business Rates

AAT members (licensed accountants) have highlighted their concerns about the increasing burden of business rates.

AAT is represented on the CBI Business Rates Working Group but ahead of their findings has already concluded that revaluations should take place on an annual basis, increases should be frozen and that a comprehensive review of the rates system needs to be undertaken.

In September the Liberal Democrats announced plans to scrap business rates and replace them with a land value tax. The Labour Party announced they would introduce annual revaluations (as proposed by AAT) and that a fundamental review was needed (as also previously proposed by AAT). We await the Government response at Budget 2018.

Budget 2018

The Budget will take place on Wednesday 28 October 2018.

AAT has made a comprehensive Budget submission which consists of:

• Our March 2018 Time for Change: review of the ISA landscape report, adding that we were opposed to any new “Care ISA” as reported last month
• Our September 2018 Time for Change: AAT alternatives to tax rises report – adding that AAT would also like to see annual revaluations for business rates and a freezing of business rate increases whilst a fundamental review is undertaken
• Property reform proposals – switching Stamp Duty liability and restricting or taxing overseas residential property purchases

Labour Party Conference

Attending almost 20 fringe events in Liverpool, on topics including social mobility, apprenticeships, the future of FE, prompt payment, Artificial Intelligence and the future of work and so much more, was an exhausting yet rewarding experience. 

Mark was also in attendance to raise awareness of AAT as well as to pick up some insight from the wide array of speakers, policymakers and stakeholders. 

There is far too much detail to list here but if you’d like further information please don’t hesitate to get in touch.

AAT Consultations, Calls for Evidence & Inquiry responses

AAT consultation responses focused heavily on HMRC in September, with recommendations relating to their use of civil information powers, their general powers, their fees for anti-money laundering regulation and penalties for late payment, all being made. 

These, and more, can be read in full here: AAT Public Policy responses

Other events, meetings and engagement

• ACCA celebrated their 30th anniversary of being present in China by holding a reception at which AAT met with a diverse range of stakeholders
• Joining the hugely impressive AAT HR team to see our interns again and to see AAT collect the “Employer newcomer of the year” award was an enjoyable occasion for all concerned
• Attending the KPMG “Tax Reimagined” conference enabled AAT to promote members views on overseas property restrictions and VAT and to explain our proposals to switch Stamp Duty liability from the buyer to the seller
• A trip to the Old Bailey to meet the founders/directors or two think tanks, Onward and Freer, meant we could further promote the views of AAT members on a wide range of subjects
• Meeting with Simon Smits, the Dutch Ambassador to the UK, provided an opportunity to briefly highlight AAT’s international credentials whilst finding out more about the many opportunities to trade with, and operate in, the Netherlands