IFA London Regional Meeting

Bank of England Economic Update (Presented by Daniel Amure, Deputy Agent for the Bank of England in Greater London):

• The Monetary Policy Committee meet on19 March 2025.
• Current Economic Conditions: The UK economy has been "pretty flat since March 2024," reflecting a balance of supply and demand with only a small amount of slack.
• Inflation: While disinflation has continued as expected with a 25bp cut in February and rates held in March, inflation is projected to "pick up over the first half of this year, to 3.7% by late summer." 
• This increase is largely attributed to changes in energy prices and a range of regulated prices (water bills, bus fares etc.).
• Inflation Target: The Bank of England anticipates a "steady return to the 2% target" after the summer peak, with sufficient slack in the economy to remove remaining inflation persistence.
• GDP Growth: The MPC (Monetary Policy Committee) expects both demand and supply growth to recover to around 1½%. Global GDP growth is expected to slow slightly in the first half of 2025.
• Monetary Policy: Given the current economic uncertainties, 
• The MPC (Monetary Policy Committee) is adopting a "gradual and careful" approach to reducing restriction (i.e., lowering interest rates). 
• The current Bank Rate stands at 4.5%, with the next decision due on 8 May 2025. 
• The current inflation rate is 2.8%, with a target of 2%.
• Trade Policy Uncertainty: Trade policy uncertainty has reached record highs since the US presidential election. 
• The MPC's (Monetary Policy Committees) forecast has not factored in any imposition of tariffs. 
• Potential US tariffs could negatively impact UK activity through various channels, while the impact on inflation is more uncertain.
• Labour Market: Business survey measures suggest a recent easing in employment intentions. Official wage growth has picked up but is expected to moderate. 
• The increase in employer National Insurance Contributions (NICs) is expected to push wage growth down, but prices up, with businesses planning to use various margins of adjustment in response. 
• The mood in the IFA networking break was concern about the impact that NICs will have not only on their clients and their businesses but also on them and their staff. 

IFA/IPA Benevolent Fund Update (Presented by Ian Clark, Trustee of the IFA/IPA Benevolent Fund):

• Purpose: The Benevolent Fund is "a fully independent charitable organisation which provides support to all current and past IFA Members, current IPA Members, their dependents and students."
• Funding: The fund has a "legacy fund from the previous IFA/IAB Fund ring-fenced for IFA Members current and past" for hardship support and a new unrestricted fund from donations for broader support including IPA members and students.
• Support Offered: The fund typically offers "a one off non-repayable grant based on need." The application process involves a "simple form" requiring basic financial information, which can be found on the IFA website. Support can be requested for household bills, vital equipment, or other specific needs. The payment cap is £5000, but there may be circumstances when a further application can be made in a year. 
• Recent Beneficiaries (Examples):
• A single parent who had to reduce work hours to care for a child with medical needs.
• An individual unable to work due to a road traffic accident.
• An individual in a refuge needing support for children and help furnishing a new home.
• The personal stories of hardship, brought a flood of emotional support from the attendees.
• Impact of Support (Quote from a beneficiary): 
• "When I heard my application had been successful the relief was enormous. It has been an incredibly tough time and being able to pay some outstanding bills has made such a difference to my stress levels."
• Focus Over the Last Year: 
• Increased applications, growing funds, collaboration with IFA for donation opportunities during membership renewal, and improving internal processes.
• £18,000 was raised last year through membership donations. And IPA also made a generous donation.
• Next Steps: Sharing the new constitution, better communication about beneficiaries, improving the website, promoting the fund, and widening support.
• They are also looking into the possibility of corporate donations.
• Members asked if they could personally provide additional support and the answer was yes, this can be made on the IFA website.

Upcoming IFA Events and Initiatives:

• IFA Conference 2025: 
• Held on 26 June 2025 at the prestigious Royal College of Physicians, London. 
• The theme is "Exploring opportunities in the MSME sector for accountancy practitioners and businesses." 
• It will include tailored sessions, business updates, networking, and the NEW IFA member awards and drinks reception.
• The IFA Awards 2025: Three categories: 
• IFA Member of the Year - IFA Practice of the Year - Rising Professional of the Year - The awards are to recognise the work done by IFA members
• Nominations close 11 April. Shortlist announced 15 May. Winners announced at the IFA Conference on 16 June.
• Recognition: 
• Winners and shortlisted receive recognition on the IFA website and social media, and a feature in Financial Accountant magazine.
• Upcoming Online CPD: A series of webinars covering topics such as:
• data analytics
• future-proofing practices
• payroll
• mitigating the NIC increase, and 
• AML matters
• London Regional Meetings 2025 (Face-to-Face Networking Events): 
• Scheduled for Wednesday 11 June, Wednesday 10 September, and Wednesday 12 November.
• Member Survey 2025: Opens on 16 April and closes on 18 May. 
• Member feedback from previous surveys has been used to target organisations for member recognition and adapt CPD offerings. Members are encouraged to participate.
• HMRC Consultations: The IFA will be responding to consultations on:
• The "Reform of behavioural penalties" and
• "Better use of new and improved third party data." 
• Members are encouraged to provide their input via the IFA webpage.
• My Community: An member initiative:
• A "member-only virtual platform" for - discussions, networking, and sharing resources. 
• Members are encouraged to sign up.