It is nice to know that the government can still surprise us. While we were preparing to not find out until the last minute when the Chancellor would set the Autumn Budget date for, we started the week with relatively advanced notice that the Budget would take place on 6 November. Relatively.
But given the times, there are a few caveats
Regardless of how we leave the European Union: deal or no deal or should there be an extension, the government has said that the Chancellor will definitely give an economic statement to the House. Should there be a no deal or an extension, the government is likely to delay the Budget. But if we leave the EU with a deal, then we would see both the economic statement and the Budget on 6 November.
So, what are the CBI priorities?
Businesses have been clear with us. Brexit is sucking the energy out of the government’s domestic agenda. The upcoming Budget provides the opportunity to address urgent areas of investment not covered by the spending round: infrastructure, which must include publication of the National Infrastructure Strategy, research and development through the publication of the R&D roadmap and the move to a low carbon economy.
The CBI has advised the government to focus on three key objectives, with key measures to achieve those objectives.
Protecting the UK’s international competitiveness
At this unprecedented time, and with the world watching, the CBI is calling on the government to:
- Reform the outdated business rates regime, with a set of targeted short-term measures (including introduction of a similar measure to the Scottish Growth Accelerator) and an independent review, which should conclude before the next Budget 2020 and has the aim of reducing the rates burden on individual businesses over time
- Delay and halt new tax measures that put the UK out of lockstep with its international competitors, which must include a delay of the Digital Services Tax to allow for the OECD to reach a consensus-based solution
- Protect our world-class universities and colleges with a call to publish a Ministerial Statement on the next stage of post-18 review of education and funding and deliver the previously committed £38m in capital investment for T-levels in 50 colleges.
Accelerating the vision for the UK economy
The CBI has called on the government to use this Budget to:
- Combine the power of the tax system and public spending to boost business investment in the technologies of the future by extending the scope of the R&D tax credit, increase public funding for R&D and increase funding for HMRC to ensure the department is sufficiently resourced to settle claims on a timely basis
- Make the UK a world leading low carbon economy by announcing an ambitious set of measures in the energy efficiency, transport and power space
- Connect up the regions of the UK to level up productivity and growth and committed to delivering major infrastructure projects, including HS2, Crossrail and Heathrow.
Protecting jobs and increasing living standards by giving businesses breathing space
- Delay the introduction of measures that would add to the cost of employing people including IR35, where are calling on the government to delay the introduction of this change until April 2021 to allow business adequate time to prepare and comply with the legislation
- Reform the Apprenticeship Levy with an immediate cash injection to ensure the scheme is solvable under a potential overspend and open up the conversation about long-term reform and a possible ‘Skills Levy’.
The full submission calls for a number of additional measures from the government, including in devolution, financial services and immigration. If you would like to read the full submission, please contact Fiona Geskes.
And don’t forget to check My CBI on 6 November, where we will be analysing what the Budget means for you. In the meantime, please don’t hesitate to get in touch should you have additional questions