There’s one thing the Chancellor can announce at the Autumn Statement that will have the single most transformational impact on business investment and growth. And that’s make full expensing permanent.
It’s something the CBI has pushing for for a long time – and we were successful in our campaign to get the temporary super-deduction (introduced to aid pandemic recovery) replaced with three years of full expensing at the Spring Budget earlier this year.
This was a strong statement of intent from government to support business investment – but it didn’t go far enough. With investment cycles often looking further than three years ahead, businesses need long-term certainty to make the really big investments the UK needs in infrastructure, net zero and innovation.
So with less than a week to go to the Autumn Statement, and together with Make UK an Energy UK, we wrote to the Chancellor to show the strength of business support behind this issue. Our open letter was signed by more than 200 companies and trade associations urging action.
The letter reiterates our analysis of the significant impact this measure would have, and highlights evidence from the OBR and IFS that supports it.
If we are to tackle the pressures businesses face, we must create an environment that unlocks business investment to achieve sustainable growth and mobilise the potential and productivity of the UK workforce.
You can read the full text of the letter – and find a list of signatories – in our press release.
You can see how The Times reported on it.
And you can find out more in our explainer on what full expensing is and how it could boost the economy.