Any fiscal event – whether a Budget or a Spending Review – is a great opportunity to see some results and achieve real change. Although this year’s Spending Review was lower key, only covering a one-year period (typically they span the next five years), there were still some important funding announcements that will be welcome news for businesses across the UK.
Investing in further education
- Investing in technical education has been a priority for business, and the CBI used this Spending Review to call for an increase in education spending for 16-18-year-olds. Business will be delighted to see the government investing £400m in further education for 2020/21.
More money for schools
- With the CBI’s Unlocking Regional Growth report identifying primary and secondary education as key drivers of regional productivity, it is great to see this new government increasing school funding by £2.6bn in 2020/21.
Strengthening the UK’s international image
- With UK’s imminent departure from the EU, strengthening trade ties and global relationships has never been more vital. The CBI used the Spending Review submission to call for increased funding for trade staff, so the additional £90m for 1,000 new diplomatic positions and 14 upgraded posts comes as welcome news. This will be particularly important to those businesses that trade and invest across the world
- A £60m boost to the the GREAT campaign, which showcases the best of what the UK has to offer, will promote the UK as a great place to do business.
Strengthening local economies
- The focus for business has been rightly on regional policy, so the additional investment in the Towns Fund of £3.6bn, and a further £200m for buses, two important steps in connecting the UK’s regions with the vital transport and town services needed to boost productivity and prosperity.
Commitment to an ambitious national infrastructure strategy
- A joined-up infrastructure strategy has long been a priority for business, so the announcement of its publication this Autumn is a key milestone in ensuring UK infrastructure can support future growth. Additionally, hearing the Chancellor acknowledge the importance of the National Infrastructure Commission will mean a continued independent evidence base informing the UK’s infrastructure needs.
Recommitment to the 2.4% R&D target
- Alongside changes to the R&D tax credit, the CBI called for an increase in departmental R&D spending, so hearing this new government recommitting to the 2.4% target shows a firm focus on innovation as a key driver of UK competitiveness. All eyes will be on the Budget where we are expecting further details.