In the Spring Budget, we needed the Chancellor to deliver a strong second act in his plan to secure stability and growth.
As the Chancellor termed it, it was a Budget for growth. He focussed on addressing the tight labour market supply and stuttering business investment – the two areas our members told us are the biggest blockers of growth for their firms, the two areas we’ve been campaigning hardest on, and the two areas where we got a direct response.
Getting the replacement for the super-deduction was critical
Combine the end of the super-deduction, with a sharp rise in Corporation Tax, and we were facing a cliff-edge for business investment. But our economists crunched the numbers and presented a strong economic case for replacing it with full expensing.
We got the full capital expensing we were asking for. And while it is temporary for now (three years), it was important to hear the Chancellor say he will consider making it permanent in future – a commitment we will be following up on.
Watch our short explainer to find out why and how this will help firms.
Childcare took centre stage
For months, we've been calling for tangible action to improve the UK's childcare system - on behalf of our members and parents. And the Chancellor responded with a pledge to provide 30 hours of free childcare a week for children over nine months, alongside a boost to subsidised childcare for parents on Universal Credit.
Although there's work to be done to ensure the market has the capacity and support to deliver on this commitment. This lays the firm foundations we need to tackle labour market shortages and gender inequality.
Watch our explainer to see how changes to the current childcare system can help overcome shortages in the UK labour market.
There were other measures focused on economic inactivity too
And as the CBI called for, this included extra support to help tackle the most common long-term health challenges – such as mental health and musculoskeletal conditions – that force people out of the workforce. This won’t just boost productivity, but help the NHS too.
If you’re a CBI member, you can find out more about what was announced, where the CBI had impact, and the implications for your business.