CBI full reaction to the budget
At a glance - what the CBI says on:
Corporation tax | 50p tax rate | oil and gas tax relief | SMEs | deregulation | carbon reduction commitment | air passenger duty | carbon price floor | pensions tax relief | planning | R&D tax credit | industrial policy | enterprise zones | tax credits for creative industries | broadband | controlled foreign companies | anti-tax avoidance | public sector pay deals
The CBI today gave its full reaction to the Chancellor's Budget speech.
John Cridland, CBI Director-General, said:
“Family budgets have been under great pressure, and by putting more money in the pockets of ordinary people, the Chancellor has provided a much-needed confidence boost.
'With many calls on the Chancellor to spend money he didn’t have, the best news for businesses is that he stuck to his guns and delivered a fiscally neutral programme'- John Cridland
“The Chancellor has also painted a clearer vision of how the UK will earn its living in the future and, by seizing the opportunity to make sure our corporate tax system is more internationally competitive, he has sent a powerful signal to companies to invest, do business and create jobs in the UK.
“An extra one per cent off corporation tax this year could make a big difference to investment intentions. Plans to reduce the top rate of tax to 45p by April 2013 will show best and aspiring talent that this government wants them to create wealth here.
“With many calls on the Chancellor to spend money he didn’t have, the best news for businesses is that he stuck to his guns and delivered a fiscally neutral programme.
“If businesses were looking for more, it was in the area of deregulation. For smaller businesses, things may not feel very different on the ground. It would have also have been a huge relief if the Chancellor had taken the opportunity to get rid of the currently unworkable Carbon Reduction Commitment.”
Mr Cridland added:
“The additional cut in the headline rate of corporation tax will help make the UK a more attractive place for companies to invest, do business and create jobs. It puts a rate of twenty per cent within our reach.”
“Reducing the 50p income tax rate will send a clear signal that the UK is open for business. We must continue to encourage top talent to live and work in the UK.”
“Today’s announcements will give more certainty around decommissioning and new field allowances. This will unlock investment and help ensure our security of energy supply.
“Companies will now look forward to seeing the detail of the gas generation strategy which must join the dots on the government’s approach to energy generation and act as a positive signpost to investors.”
“The Business Finance Partnership is an innovative way of matching previously untapped private finance with demand. Doubling the incentive under the enterprise management scheme will enable entrepreneurial, high-risk companies to motivate their staff. Increasing the government’s risk sharing under the Enterprise Finance Guarantee will make banks more able to boost small business lending.”
“Businesses, especially smaller ones, will be disappointed that the Chancellor did not do more to cut red tape. There needs to be much greater urgency to the government’s deregulatory agenda. We must bring down the barriers to companies hiring staff and creating new jobs.”
“The government is wasting time by announcing yet another consultation on the Carbon Reduction Commitment, rather than getting on with scrapping this complex and bureaucratic scheme.”
“The Government has missed an opportunity to reinforce that the UK is open for business by going ahead with an 8% rise in air passenger duty. The UK’s tax on air travel is already the highest in the EU and this rise puts us at a competitive disadvantage.”
“The 33% rise in the carbon price floor will hit UK energy-intensive businesses hard, and underlines the need for a more coherent strategy to unlock low-carbon industrial growth.
“In the meantime, we urgently need support to those companies most at risk from the increase.”
“It’s good that the Chancellor heeded calls from businesses to leave last year’s settlement on pensions tax relief alone. Further changes to pensions relief would have hit many higher earners, and harmed our ability to attract top talent to the UK.”
“The National Planning Policy Framework, and in particular the presumption in favour of sustainable development, will help to give businesses confidence to invest in critical local infrastructure when it is launched next week.
“The new planning framework should encourage local authorities to help boost growth while striking the right balance with social and environmental sustainability.”
“We welcome the Government’s commitment to introduce an above-the-line R&D tax credit. The proposed changes will make the UK a better place to do R&D by providing greater certainty for businesses, and boosting the visibility of the credit to international investment managers.”
“Industrial policy needs to be at the heart of our plans for growth, so it’s good news that the Chancellor has listened to businesses and announced an independent review led by Lord Heseltine.”
“The new Enterprise Zones announced today will help support greater economic activity right across the UK. These new zones will encourage investment and give business a strong incentive to expand activity creating jobs in parts of the country that need them most.”
“The new tax credits for TV drama, animation and computer game firms will be a welcome boost for the UK’s creative industries. These highly mobile companies operate on a global stage, and their exports generate much-needed wealth and jobs.
“With other countries already offering attractive tax incentives it’s important that the UK can continue to compete.”
“The government’s commitment to support private sector delivery of world-leading broadband is right on the mark, and will ensure the UK’s high-tech companies have the infrastructure they need to be global champions.”
“We welcome the additional £150m of public money to support the roll-out of super-fast broadband coverage in UK cities, although getting the details of this funding right will be critical to its success.”
“The CBI’s lobbying on CFCs will result in draft legislation which meets the Treasury’s stated objectives of simplification and greater competitiveness. Our proposals for a ‘Gateway’ will simplify what has been a hugely complex system by making clear which companies are affected by the legislation.”
“We welcome the consultation on the proposed General Anti-Abuse Rule (GAAR). The legislation needs to balance the need to stamp out truly abusive avoidance schemes with the need for clarity and certainty around legitimate tax management.”
“Localising pay setting will allow public sector employers to have greater control over their budgets, and so will deliver taxpayers better value for money. It should also help level the playing field for private sector companies and help them to create new jobs.”