Employers call for urgent action to tackle UK finance skills gaps

• 84% of UK employers face barriers to upskilling their workforce.
• A third of businesses (34%) struggled to recruit for finance and accounting positions in the last year.
• Employers say AI and automation (25%), budgeting and forecasting (25%), cybersecurity (20%) and data analysis (18%) will be the most critical finance and accounting skills.
• Businesses are calling for the skills system to be easier, clearer and more flexible.

London, 16 October 2025 – AAT has today released a new report which found that four in five of all employers struggle with skills shortages leading to a drop in productivity for 42% of employers and reduced quality of work (40%), and an increase in workload for existing staff. 

The data shows that a third of businesses (34%) have struggled to recruit for finance and accounting positions in the last year, with employers reporting a shortage of skills in key areas. Key skills include technical abilities: budgeting and forecasting (24%), data interpretation and analysis (23%), and financial reporting (21%), as well as transferrable skills such as critical thinking, problem solving and strategic thinking (27%). These figures highlight not only an immediate recruitment challenge but also a broader issue: many employers lack the combination of technical and transferable skills required to future-proof their teams.

Future skills demand in finance and accounting

Looking ahead, employers are increasingly concerned about the skills their finance teams will need to thrive in the next three to five years, particularly in technology-driven areas such as AI and cybersecurity. 

When asked to identify the top three finance and accounting skills for the future, employers pointed to AI and automation (25%), budgeting and forecasting (25%), and cybersecurity (20%) as most critical. Yet many employees today have only basic or no capability in these areas, with 52% lacking AI skills, 25% missing cybersecurity skills, 26% needing ESG reporting skills, and 27% without communication and interpersonal skills.

To address this widening gap, businesses are exploring practical solutions, including targeted training and upskilling programmes designed to equip staff with both technical knowledge and essential power skills.

Taking action with training and upskilling

With the skills gap already putting pressure on finance teams, employers are increasingly looking to training and upskilling to bridge the shortage, though they face significant obstacles in doing so.

The research demonstrates that 84% of UK employers face barriers to upskilling their workforce, with the biggest challenges including a lack of time for employees to train (41%), the cost of programmes (35%), limited employee engagement (27%), and a shortage of suitable training options (22%).

Half of employers also report that while candidates for accounting and finance roles often bring strong technical expertise, they frequently lack the transferable skills such as communication, resilience, and problem solving, which are needed to succeed. Only one in ten (11%) employers disagreed.

Despite these challenges, one in four employers have taken steps to address the finance and accounting skills gap. 

While some employers have upskilled existing staff (26%) others have spread additional workloads among current employees (23%), almost one in five also said they are having to outsource work within the UK (17%) and 10% outside of the UK. This has left domestic talent untapped and reveals an emerging trend of jobs are being pushed elsewhere. To address the scale of this challenge, coordinated action across employers, government, and professional bodies to ensure finance teams is needed to meet both current and future demands. 

Reflecting on the findings of the ‘Filling the Gap’ report, Sarah Beale, AAT CEO said: “Skills shortages are already increasing workloads, reducing innovation and productivity, and driving up costs. In some cases, pushing businesses to outsource roles overseas, despite the high number of NEETs in the UK, many of whom could and should be filling these roles. 

Turning to what this means for the UK’s growth ambitions, Beale explained: “With finance and accounting roles crucial to the success of the government’s eight key growth sections, this isn’t just a missed opportunity, it represents a critical failure. Every internationally outsourced role is one less chance for UK talent to gain experience and strengthen the long-term resilience of the sector.” 

Building tomorrow’s workforce together 

Businesses are calling for the skills system to be easier, clearer and more flexible, with 36% wanting incentives for hiring apprentices or trainees, 29% want clarity on which short courses will be funded via the new Growth and Skills Levy and 25% want more practical help for SMEs to navigate the training system.

Speaking on the importance of collective action, Sarah Beale added: “Closing the gap and ensuring maximum return to the UK economy requires joint action. That starts with understanding why the supply of skilled talent isn’t keeping pace with demand. Government must simplify systems and support employers to recruit and upskill, while employers invest in quality training. Professional bodies, in turn, should provide lifelong learning, open access to qualifications, recognition and development.”

Drawing on this research and the feedback from employers, AAT is recommending three key actions for government:

• Create an “SME Skills Navigator” service to help small employers access relevant finance training and apprenticeships.
• Urgently clarify what types of short courses in accounting and finance will be eligible via the new Growth and Skills Levy, with clear timelines or implementation.
• Develop a new campaign targeted at learners and employers to increase the attractiveness of apprenticeships, with a particular focus on SMEs.

To download the full report, visit: https://www.aat.org.uk/files/aat-filling-the-gap-report-chapter-1-current-landscape.pdf   

For media enquiries please contact media@aat.org.uk   

Editorial notes:  

• The ‘Filling the Gap’ Report is part of an extended series of research, exploring the skills needs of UK employers in accountancy and finance roles, based on a survey of 1,396 UK employers.
• Conducted by YouGov on behalf of the AAT (Association of Accounting Technicians), it included responses by HR decision makers, senior managers, directors and member of the C-suite.
• Filling the gap provides insights into current and future skills gaps, recruitment challenges, and training priorities.