On 11 March, the Chancellor stood up and delivered his and this government’s first Budget – and the first opportunity for the CBI to shape government thinking.
Read what the CBI called for in our Budget submission here.
So what was the CBI Impact?
- Chancellor announces fundamental review of Business Rates: this was a key CBI Budget recommendation, and the confirmation of a fundamental review will be hugely welcomed by businesses
- Government invests £22bn a year in R&D: this will make a significant contribution to meeting the UK’s 2.4% R&D target and includes a commitment to a UK style ARPA
- Increases in the R&D tax credit to 13%: the Chancellor has announced both an increase to the R&D tax credit and a consultation into extending the scope of the credit to data and cloud computing in line with the CBI’s recommendation in Untapped Investment
- Rolling out rapid charging points for Electric Vehicles: £500m committed to deliver roll-out of rapid charging infrastructure will help business with the costs of connecting high-powered charge points to the electricity grid
- Devolution deal announced for West Yorkshire: £160m committed from the Local Growth Fund to the West Midlands Combined Authority to accelerate progress on the Eastside Metro extension and phase one of the Print bus rapid transit network
- Increases to the Structures and Buildings Allowance: to spur investment in commercial buildings the government has increased the SBA from 2% to 3% in line with the CBI’s Budget recommendation
- No increases to Insurance Premium Tax at Budget: The government steered away from increasing the rate of IPT and committed to publishing the results of their recent call for evidence into the operation of the tax
- Government makes sensible reform to Entrepreneurs Relief: government continues to support Entrepreneur’s Relief with sensible reform to help scale up businesses grow
- Government confirm postponed accounting for VAT on all imported goods: since the EU referendum, the CBI has been campaigning to ensure businesses who rely on imports as part of their supply chain do not face cash flow challenges from 1 January 2021, when the UK will no longer be an EU member state
- Increase in capital funding for further education colleges: a £1.5bn commitment over five years to upgrade our colleges will help to raise the quality and efficiency of vocational education provision
- Oxford Cambridge Arc: the government has announced plans to develop a long-term spatial framework to support strategic planning in the OxCam Arc to improve connectivity and economic growth in the region
- Green Book review
- Government commits to deliver £5bn for gigabit broadband: the Budget confirmed funding for the rollout of gigabit-capable broadband in the most difficult to reach 2% of the country
- Significant funding announced for regional transport infrastructure: funding for the road investment strategy, Midlands Rail Hub and the Transforming Cities Fund as well as funding for Mayors will improve the quality of the UK’s transport infrastructure
- At least two Carbon Capture and Storage sites announced: £800m of funding has been committed to support the use of CCS as part of the UK government’s plans to decarbonise the economy
- New equity investment programme for the British Business Bank: £200m to support large-scale venture growth funds in life sciences companies
- Increased support announced for UK exporters: the Budget announced a £2bn increase in the UK Export Finance Direct Lending Facility and additional advice and support will provided across UK regions and through local champions in key overseas posts to help British businesses export
- Clarity provided on the future of UK carbon pricing: the Budget kept the carbon price support at £18 per tonne of CO2 providing stability for investment in low carbon energy.
Overall a good Budget for business. You can read a full CBI analysis here.
