Budget to set the tone for post Brexit Economy
11 October 2018
CBI calls on the Chancellor to back business at the upcoming Budget
The CBI publishes its submission to the Chancellor ahead of the Budget on 29 October.
This week, the CBI published its Budget submission calling on the Chancellor of the Exchequer to make a number of targeted measures to kickstart business investment.
In its pre-Budget letter to the Chancellor, the CBI’s proposes ways to unlock enterprise, increase the country’s competitiveness and attract more investors, all aimed at lifting productivity and sharing prosperity. This being particularly important as the UK has the lowest level of business investment as a proportion of GDP in the G7, with the gap widening even further.
The CBI’s submission focuses on three key areas to unlock growth. Firstly, a focus on reforming business rates to ensure firms can invest and grow. The submission calls for a review of the business rates model in 2019/20 with a focus on investing in digital, new technologies and energy efficiency. Secondly, building on recent announcements to make the apprenticeship levy work, including a request for the Chancellor to double the budget of the Institute for Apprenticeships to £28 million to give it the capacity to approve training schemes quickly and efficiently. Finally, the submission assesses ways to improve capital allowances to drive investment particularly in digital and low carbon technologies. With this in mind, the submission calls for an increase the Annual Investment Allowance to £500,000 for two years.
In her letter to the Chancellor, CBI Director-General, Carolyn Fairbairn, highlighted the importance of using the Budget to showcase the UK as an open, collaborative and confident nation. Carolyn went on top emphasis that entrepreneurs here and around the world need to see a UK committed to harnessing the power of business to innovate and tackle problems, from sustainability to inequality.
This Budget must also help tackle the immediate impact of Brexit uncertainty. One of the CBI’s submission asks is for the government to urgently invest in an online one-stop shop of advice and information for businesses about leaving the European Union.
Going forward, the CBI will be meeting with key stakeholders in the Treasury and Shadow Treasury teams to highlight the CBI’s key areas of focus to help business and deliver shared prosperity.
For further information please contact Fiona.Geskes@cbi.org.uk