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As the UK Budget gets closer, ACCA (the Association of Chartered Certified Accountants) has polled its UK members asking the question:

Given the current state of UK public finances, which of the following do you think is a better proposal from the government to deal with the UK budget deficit?

• Cuts in public spending
• An increase in national insurance contributions (NICs)
• Both

Fifty-six percent of those polled would favour proposed cuts in public spending from the government to deal with the UK budget deficit.

The least appealing policy solution would be an increase in NICs, with only 5% agreeing with this as a remedy.

However, 21% of respondents consider that a combination of the proposed two measures - cuts in public spending and an increase in national insurance contributions - would be a viable option for the government to pursue.

A further 18% said that neither of the two options would be strong proposals to deal with the budget deficit.

Chas Roy-Chowdhury, head of taxation at ACCA, says: 'As we approach a general election and a spring Budget, this is an interesting snapshot from a cross section of the profession about how the UK's deficit could be handled.

'National insurance contributions will rise in April 2011 anyway, and it does not seem too far-fetched for a government to raise both NICs and cut public spending. Tackling this economic deficit will be a difficult policy decision to make for whatever hue of government is voted into power.

'There is little doubt that 2010 will be about making tough and possibly unpopular policy decisions. But ACCA members have clearly indicated that tax increases would be the soft option and they favour spending cuts.'

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Notes to editors

1. 124 ACCA members across the UK were polled online between the dates of Friday 5 March and Monday 8 March 2010.
2. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 393,000 students and 137,200 members in 170 countries worldwide.
3. ACCA has worked with governments, national organisations and development agencies in emerging economies - for over 20 years - promoting the accounting profession, to create value for the communities, businesses and individuals it serves.
4. ACCA believes that globalisation of business means that one set of reporting standards is essential. We favour the principles-based IFRS.
5. ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide.