In this special edition of Insights In Focus, Iain Wright, ICAEW’s Managing Director, Reputation and Influence is joined by Kitty Ussher, Chief Economist at the Institute of Directors, and Suren Thiru, ICAEW’s Director, Economies. Talking on the morning that UK GDP figures for May were released showing an unexpected return to economic growth, Kitty and Suren both tell Iain why managers and business owners should be more confident in the economy’s medium-term health. Inflation rates are likely to come back within a manageable margin by next year, and the fundamentals of the UK economy are in better shape than many business leaders think.As Kitty points out, “Everyone’s feeling worried at the moment. That means your competitors are also feeling worried. And so if you think the fundamentals of your business are actually okay … then you should be investing for your future because it may be that your competitors are too nervous to do so.”Beyond advising everyone to stop worrying, the team also discuss why the labour market is so hot, how the government should help ease the staff shortages so many businesses face, and what changes to economic policy will really make a difference to the UK’s companies.And finally, when we have a new Conservative government eight weeks from now, what would Kitty and Suren advise the next Chancellor to focus on. Would you agree?Guests- Kitty Ussher, Chief Economist at the Institute of Directors- Suren Thiru, Director, Economies, ICAEWHostIain Wright, Managing Director, Reputation and Influence, ICAEWLinks:- https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/may2022 - https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/articles/whatistheproductivitypuzzle/2015-07-07ProducerNatalie ChisholmEpisode first published: 18 July 2022Podcast recorded: 13 July 2022

On the latest ICAEW Insights podcast, we speak to Martin Wheatcroft about rising inflation and what that means for businesses, plus capital allowances reforms.Inflation is rising at a record pace across the world, triggered by the COVID-19 pandemic and exacerbated by a perfect storm of world events, including the war in Ukraine. We explore the impacts of this, both negative and positive, and what it might mean for public finances. We also take a look at the government’s plans for capital allowance reforms. As the end of the superdeducton approaches, the UK government is considering reforms to capital allowances to support and encourage business investment. ICAEW has responded to the government plans. Richard Jones from ICAEW’s Tax Faculty to discuss this and the ongoing delays to R&D processing.Links:- https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator- https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/may2022- https://www.imf.org/external/pubs/ft/fandd/basics/30-inflation.htm- https://www.bbc.co.uk/news/business-12196322- https://www.gov.uk/government/publications/potential-reforms-to-uks-capital-allowance-regime-inviting-views/potential-reforms-to-uks-capital-allowance-regime-inviting-views- https://www.icaew.com/insights/tax-news/2022/may-2022/treasury-invites-views-on-reforming-uk-capital-allowance-regime- https://www.icaew.com/insights/tax-news/2022/jul-2022/icaew-calls-for-more-innovative-thinking-on-capital-allowances-reform- https://www.icaew.com/insights/tax-news/2022/may-2022/hmrc-suspends-payment-of-some-rd-tax-creditHost: Philippa LambGuests:- Martin Wheatcroft, financial strategy consultant- Richard Jones, ICAEW’s technical manager, business taxProducer:Natalie ChisholmEpisode first published: 14 July 2022Podcast recorded: June 2022