2025: Can accountants turn the tide on trust and growth?

As 2025 dawns, accountants find themselves at the heart of an economy still navigating the aftershocks of a global pandemic, seismic political shifts, and eroding institutional trust. From spearheading economic recovery to upskilling for the digital future, the profession stands uniquely positioned to drive stability in an uncertain world.

But are accountants ready to rise to the challenge?

This pivotal year comes with a young UK government grappling with an ambitious agenda, global political transitions, and heightened expectations for economic performance. According to ICAEW CEO Alan Vallance, accountants have a critical role to play as “custodians of trust,” ensuring businesses operate ethically, transparently, and sustainably.

With growth, skills, and trust as focal points, the profession’s collective response could define not only its future but also the broader economic landscape.

Economic Growth: Accountants as Enablers

Economic stagnation was a key driver of 2024’s anti-incumbency wave, leaving businesses and governments under pressure to deliver tangible improvements. Quality audit and accountancy work is vital to restoring confidence, enabling businesses to thrive, and supporting tax revenue growth.

Professional services, particularly those tied to emerging areas like sustainability disclosures, present a promising opportunity for the UK economy. Companies are increasingly seeking expert advice to navigate sustainability reporting requirements, and the UK accountancy profession is already attracting international business for its high standards in this domain. ICAEW’s focus on ensuring the profession remains globally competitive is reflected in its participation in discussions around the government’s forthcoming Industrial Strategy.

Accountants’ expertise in financial reporting and assurance will be indispensable as businesses look for clarity and certainty in policy frameworks. As Vallance emphasises, “businesses want long-term incentives to invest, employ more people and stimulate growth.” The profession must advocate for clear, consistent policies to unlock these opportunities.

The Skills Gap: Securing the Future

As businesses confront rapid technological change, a skilled workforce is essential. Higher education and vocational training, particularly through programmes like Level 7 apprenticeships, play a key role. According to ICAEW, the number of school leavers entering accountancy has doubled since the Apprenticeship Levy was introduced, with 79% of ICAEW apprentices under 24.

Yet funding for these apprenticeships faces uncertainty. ICAEW warns that cuts could result in a significant talent drain, potentially pushing firms to outsource jobs overseas. Maintaining this funding isn’t just about protecting the profession—it’s about safeguarding the UK’s ability to compete in the global marketplace.

The focus on upskilling doesn’t stop there. Technology, particularly artificial intelligence, is reshaping accountancy workflows. ICAEW’s recent resources on AI aim to equip members with the foundational knowledge they need to integrate these tools responsibly into their work. Sustainability, too, is a growing frontier for accountants. As more companies come under reporting regulations, accountants must align financial and sustainability thinking to deliver comprehensive corporate reporting.

Preparing for Regulatory Shifts

The profession also faces a raft of regulatory changes, with 2025 a crucial year for preparation. Making Tax Digital for Income Tax, set to roll out in 2026, will require millions of taxpayers to adapt. Accountants will play a critical role in guiding businesses and individuals through the transition, and ICAEW’s Tax Faculty is ramping up resources to support this effort.

Audit reform is another pressing issue. Discussions with the UK government have highlighted the importance of proportional legislation that ensures high-quality reporting without overburdening firms. Initiatives like the newly launched Centre for Public Interest Audit (CPIA) are designed to build confidence in audit work, with tools like the annual audit trust index providing benchmarks for progress.

As Vallance notes, the UK’s leadership in professional and business services depends on getting these reforms right. A balanced approach could enhance investor confidence while avoiding undue regulatory burdens.