This year's Budget should have the biggest impact on driving growth, particularly for small businesses, says the Institute of Chartered Accountants in England & Wales.
In its submission to the Chancellor, the Institute urged the Government to do more to create a long term and stable business environment in which economic growth can accelerate.
It wants the Government to set out its long term tax policy and expectations in the same way that it publishes its comprehensive spending review. It believes this would give businesses greater certainty over tax demands, enabling them to more accurately forecast, invest and plan for growth.
* Follow the budget LIVE with icbirmingham.co.uk/post this afternoon *
Eric Anstee, chief executive of the ICAEW, said: "Accelerating the rate of economic growth must be the priority for this Budget.
"One practical step would be to give businesses greater certainty as to the tax burdens they will face through a 'Comprehensive Income Review'. Rather than meddling with taxation policy each year to fill budget gaps and taking the short term view, we urge the Chancellor to look at income in the same way that he undertakes his Comprehensive Spending Review, developing a strategy that will encourage inward investment and growth.
"With public spending set for an all time high, the Chancellor can no longer ignore the long term consequences to business. He must give urgent attention to how he can encourage and stimulate economic growth so that he can deliver on his public spending ambitions."
The Institute is also urging the Government to start at the smallest end of the scale as it seeks to tackle the regulation-led culture.
According to the Institute's Enterprise Survey, the overall cost of implementing new legislation reached #7 billion last year, with 73 per cent of these costs borne by micro businesses with less than ten employees.
Later this year businesses will face further financial burdens that include new social maternity and paternity leave regulations.
The Institute is proposing two measures that will help reduce the regulatory impact on small businesses. Firstly, that the taxation system should be fundamentally changed so that it works to support small businesses and, secondly, that the culture of Government needs to change so that the needs of small businesses are taken into account from the start of all policy initiatives.
Frank Haskew, head of the tax faculty, said: "Our tax systems have become so bureaucratic and complex that they are hindering business growth across the economy."