CBI's Budget 2012 submission to the chancellor
The CBI calls on George Osborne to take the opportunity to score growth and investment policy goals
Read the full press release>>
Read more on the budget>>
Read the full budget submission (pdf)
The CBI urged changes to the UK tax system which we believe could help persuade businesses to invest in the UK and further stimulate growth.
The CBI is calling on the Chancellor to ...
Implement policies proposed in the Autumn Statement to support growth, including:
- Stimulating infrastructure investment, through new models of private finance, including investment by pension funds. This will require pooled investment platforms, infrastructure being a mainstream asset class, and effective baton passing between the construction phase and long-term financing
- Providing non-bank finance to mid-sized businesses through a corporate bond market, incentivising corporate venturing, and through the Business Finance Partnership
- Delivering on its proposals for credit easing, which means getting the details right on a bank guarantee scheme
- The Youth Contract, which needs to be extended to 16 and 17-year-olds
- The New-Build Indemnity Scheme, which will help make mortgages more affordable, and unfreeze the housing market.
Boost growth through reforms of the UK’s tax system:
- Ensuring changes to the UK’s Controlled Foreign Companies regime result in a simpler way of taxing foreign profits, and a less complicated “Gateway” than is currently in the Government’s draft legislation
- Introducing a new capital allowance to attract investment into types of infrastructure which do not currently qualify, this would apply only to future spending to minimise cost to the Exchequer and ensure the proposal incentivises new private investment in infrastructure
- Improving the flow of credit to companies, especially those with high growth potential, by expanding the Enterprise Investment Scheme; reducing the cost of raising equity for small and medium-sized businesses; and improving incentives for entrepreneurs’ relief, as soon as the public finances allow.
Ensure environmentally-related taxes do not undermine growth and investment, by:
- Replacing the Carbon Reduction Commitment (CRC) with a new Climate Change Levy (CCL), cutting confusion and complexity for businesses while protecting the Treasury’s revenue stream, by expanding the CCL, introducing Mandatory Carbon Reporting (MCR), and abolishing the discredited CRC
- Getting the increase in Air Passenger Duty right, to balance the amount of tax raised by the Treasury with the value of aviation to the economy, and pegging this year’s rise to inflation at 5%, rather than the full 8% as planned.