ACCA welcomes the opportunity to respond to the joint call for evidence from the Department for Business and Trade (DBT) and HM Treasury on modernising the regulatory environment to support business. From public, private, and diverse sectors to micro business and large firms, ACCA’s UK members work in a wide range of accountancy and finance roles. As trusted advisors to business, they are well-placed to provide early and unique insights into business confidence and economic circumstances.

ACCA recognise the importance of regulation and its role underpinning the UK’s reputation as a place to do business. A strong, modern, institutional, and legislative framework is key to ensuring the UK meets its potential. It is similarly crucial in responding to a changing world on trust, sustainability, and AI. In turn, ACCA highlights examples of regulation where it can assist in boosting confidence through market transparency and trust. We also acknowledge the added burdens, costs, and wider impacts when regulation is ineffective.

We note that the call for evidence is focused on identifying individual regulations causing issues. However, we highlight that it is often the cumulative burden of regulation that poses the greatest difficulty to smaller businesses—rather than individual regulations. ACCA has repeatedly highlighted the complexity of the tax system, including the challenges associated with navigating different thresholds in relation to grants, taxation, and ratable grants. Piecemeal changes cascade downward, increasing complexities and small-scale errors requiring compliance.

By adopting a more holistic approach, businesses would have more certainty and stability. It is through this lens we highlight regulatory issues that would benefit from modernisation or review into their effectiveness. Alongside responses to specific questions, ACCA makes the following recommendations:

• The UK’s tax system is complex and difficult to navigate. Building on the principles of Simplicity, Certainty and Stability, commit to a programme of tax simplification to encourage innovation and economic growth.
• Legislation to establish the Audit, Reporting and Governance Authority (ARGA) should proceed without further delay. This will give businesses certainty and ensure the UK maintains its reputation for the highest standards of corporate governance.
• Improving data sharing between regulators would reduce the duplication many businesses experience. Parallel processes and overlapping obligations create complexities in compliance.
• ACCA recommends adopting a one-minus-two approach whereby for every new business law adopted, two unnecessary laws are removed. Periodic and post implementation reviews can ensure regulation remains effective.
• Develop world-leading legislation promoting the ethical and responsible use of AI in a safe and transparent environment. The UK’s principles-based approach to AI should be accompanied by adequate safeguards with standards oversight to ensure consistency.
• The environment in which UK GDPR was introduced in 2018 differs from that in 2025. ACCA believes a review of the current regime would contribute to identifying elements that may require modification.

To read the response in full, please download the consultation document found on this page.