New AAT research reveals urgent need to tackle UK finance skills gap

AAT’s latest report finds four in five employers face barriers to upskilling, with businesses calling for urgent reform to build the finance workforce of the future.

UK employers are struggling to find and develop the finance and accounting skills they need, according to new research published today by AAT.

The Filling the Gap report reveals that 84% of UK employers face barriers to upskilling their workforce, while one in three (34%) have struggled to recruit for finance and accounting roles in the past year.

The findings point to a growing concern across business and industry that skills shortages are holding back productivity, innovation and growth. Four in ten employers (42%) say a lack of skills has already reduced productivity, while 40% report a decline in work quality and increased pressure on existing staff.

“Skills shortages are already increasing workloads, reducing innovation and productivity, and driving up costs,” said Sarah Beale, AAT CEO. “In some cases, this is pushing businesses to outsource roles overseas – despite the high number of young people in the UK who could and should be filling these jobs.”

The state of the skills gap

Employers report shortages across both technical and transferable skills. The most in-demand include budgeting and forecasting (24%), data interpretation and analysis (23%), and financial reporting (21%), alongside critical thinking, problem solving and strategic thinking (27%).

These figures highlight a dual challenge: strengthening core technical competencies while also building broader, future-facing capabilities that support innovation and resilience.

Future skills for finance and accounting

Looking ahead, employers are increasingly focused on technology-driven change. When asked about the most important skills for the next three to five years, AI and automation (25%), budgeting and forecasting (25%), and cybersecurity (20%) topped the list.

Yet many finance professionals remain underprepared. The research found that over half (52%) of employees currently have no or basic AI skills, 25% lack cybersecurity capability, and more than a quarter (26%) need upskilling in ESG reporting.

“With finance and accounting roles critical to the UK’s growth ambitions – particularly across the government’s eight key growth sectors – this isn’t just a missed opportunity,” Beale said.

“Every role moved abroad is one less opportunity for UK talent to gain experience and strengthen the long-term resilience of the sector.”

Barriers to upskilling

While most employers recognise the urgency of investing in skills, many face practical obstacles. Among those surveyed, 41% said a lack of time prevents staff from training, 35% cited cost, and 27% reported low employee engagement. Another 22% said there simply aren’t enough suitable training options available.

Despite these challenges, one in four employers have already taken steps to address the issue, whether by upskilling current staff (26%) or spreading workloads among existing teams (23%). However, outsourcing both within the UK (10%) and overseas (5%) remains a common short-term response – underscoring the need for a more sustainable approach.

A call for collective action

Businesses are clear about what needs to change. Over a third (36%) want greater incentives for hiring apprentices or trainees, 29% are calling for clarity on which short courses will be funded through the new Growth and Skills Levy, and 25% say SMEs need more support to navigate training systems.

To help address these challenges, AAT is calling for three key actions from government:

1. Create an “SME Skills Navigator” to help small businesses access finance training and apprenticeships.
2. Clarify short-course eligibility under the Growth and Skills Levy, with clear implementation timelines.
3. Launch a national campaign to boost awareness and uptake of apprenticeships in accounting and finance.

“Closing the gap and securing long-term growth will require collective effort,” Beale added.

“Government must simplify systems and support employers to invest in training, while professional bodies ensure lifelong learning and open access to qualifications. Only by working together can we build the finance workforce the UK needs for the future.”

Hannah Dolan is AAT's Content Manager.