Knowledge Hub – Finance Recruitment & Accountancy Insights

The UK financial sector has lost nearly 10,000 firms since 2020, driven by Brexit, the pandemic, regulatory pressures, and technological disruption. The industry is shrinking, with non-UK firms gaining ground. Experts call for strategic government intervention to maintain competitiveness.

HMRC has abandoned plans to change the tax treatment of members within LLPs, responding to industry lobbying. The original 2024 changes could have resulted in significant retrospective tax liabilities. The decision ensures that genuine capital contributions will not incur punitive tax measures.

In a world without traditional accountants, businesses could face financial mismanagement, compliance issues, and lack of strategic guidance. While technology can assist, human expertise remains crucial for accuracy, personalised service, and informed decision-making, highlighting the evolving role of accountants.

CFOs play a crucial role in boosting productivity, balancing financial health with strategic growth. By focusing on strategic productivity—aligning people, finances, and technologies—they can drive long-term success. This evolving role requires strong leadership, digital adoption, and collaboration to enhance efficiency and value creation.

The finance sector faces a skills shortage, driven by an aging workforce and lack of diversity. Modernising perceptions, supporting alternative career pathways, and fostering inclusivity can help address this gap, attracting diverse talent and enabling business success.

Quantum computing is set to revolutionise financial modelling by enhancing risk analysis, portfolio optimisation, and option pricing. With superior computational power, it promises faster, more accurate decision-making. Despite challenges, collaboration between finance and tech sectors will drive quantum adoption and innovation.