Call for Chancellor to take more action to help the lowest paid, tops ACCA Budget wishlist, alongside promise of protections for vital public services.

The Chancellor should use next week's Budget to raise the threshold at which people begin to pay National Insurance says, ACCA (the Association of Chartered Certified Accountants). According to the global accountancy body, it is a policy that would particularly support employees in Northern Ireland which have average annual earnings of 12.5%* lower than the rest of the UK.

ACCA is urging the Chancellor to use his final Budget of this Parliament to make a real difference to both individuals and businesses, with the National Insurance threshold.

Commenting Chas Roy-Chowdhury, head of taxation at ACCA, "Since the election in 2010 the government has taken steps to take many of the lowest paid out of income tax, with the threshold scheduled to potentially reach £12,500. However anyone earning £153 a week, equivalent to less than £8,000 per year, still has to pay NICs (National Insurance Contributions).

"If the government is serious about helping the lowest paid they should raise the level at which they start paying NICs. At present those earning between £7,956 and £41,865 pay 12% of their earnings in NICs, making the amount potentially saved by the lowest paid extremely significant.  This is something that would particularly support workers in Northern Ireland which have the lowest average earnings of any region in the UK, 12.5% below the average."

"In addition, raising the threshold could actually save the Government money in the long term as many of the lowest paid would be entitled to less in benefits such as housing support. 

ACCA is also calling on the Chancellor to use the budget on 18 March to remove the principle private residence from inheritance tax, as Chas Roy-Chowdhury explains:

"With house prices rising year on year in many parts of the UK, the point at which inheritance tax is paid has risen little in the past decade. We are now at the point where, in many regions, the average house price is far above the threshold and despite paying the taxes and charges that are associated with owning a property your loved ones are left with a hefty tax bill when inheriting the property."

An extension to the growth of the Governments vouchers scheme before the General Election, is also on ACCA’s wishlist.  Chas Roy-Chowdhury, continued, "Under the scheme small businesses can get up to £2,000 worth of free finance advice, offering a lifeline to many at a time when a lack of available finance is often cited as the main barrier to growth for small businesses.

"The growth vouchers scheme is due to end on 31 March and has helped up to 20,000 UK small businesses. Extending the scheme would send a clear signal that this Government backs enterprise ahead of the General Election in May."

Alongside the progressive reforms outlined by Chas Roy-Chowdhury, the ACCA's head of public sector, Gillian Fawcett is calling for greater clarity in terms of public sector spending, she concluded, "The Chancellor must lay out in clear terms how the Government plans to protect the core public services relied upon by the most vulnerable in society from further swingeing budget cuts.

"If the rumours of another £70bn of cuts turn out to be true they could have a devastating impact on the financial viability of some public services. The Chancellor needs to take this opportunity to set out credible plans on how he proposes to ensure financial sustainability to 2020 and beyond while continuing to bring down the tax burden, as he has promised.

"The demands placed on the public purse by an ageing population have the potential to burst the public sector financing bubble unless the Chancellor acts quickly and decisively to address the situation."

* Annual Survey of Hours and Earnings

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Notes to Editors

About ACCAACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. It offers business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

ACCA supports its 170,000 members and 436,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 91 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers. More information is here: www.accaglobal.com