The Chancellor delivered Skills Bootcamps, short-term support on Business Rates, and modernised R&D tax reliefs. But missed the scale of public investment needed for decarbonisation and infrastructure.
27 Oct 2021, 4 min read
It was the second Budget of 2021 and the first multi-year Spending Review since 2015. Set in a post-Brexit environment and against stronger economic recovery than expected, this joint Budget and CSR was planned to be forward looking and optimistic. One of the first real opportunities for the government to start delivering on its manifesto commitments and its Plan for Growth.
But the reality, was somewhat mixed for business. While there were some definite wins, there was also significant missed opportunity.
What did we see in the Budget?
- R&D: the Chancellor announced that HMT would be modernising R&D tax reliefs, expanding the qualifying expenditure to include data and cloud computing costs. A policy that the CBI has been calling for, this will ensure the system keeps pace with modern R&D practices and remains competitive. We also saw the commitment of £22bn on R&D by 2026-27. Somewhat right of the original £22bn by 24/25 but still crucial to the UK’s prospects for leading in the industries of the future and global competitiveness.
- Skills: Places on Skills Bootcamps will quadruple. Giving firms some much need flexibility for training and skill development. The CBI will continue to work with government to ensure th
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