The Autumn Budget presents the next opportunity for the government to reaffirm its commitment to growth. Whilst long-term ambitions have been outlined, shorter term policy decisions have fuelled uncertainty, diminished margins, and stalled investment. Tough decisions will be needed but we are clear - there can be no further business tax rises.
We sent our submission to the Treasury in October, ahead of the Autumn Budget taking place at the end of November. The submission sets out the need for the Chancellor to present a strategic vision for the tax system and deliver interventions that will help business fast-track infrastructure, maximise workforce potential, scale technology, and boost competitiveness.
Our submission in brief
Our members welcome the positive ambition the government has presented through the Modern Industrial Strategy, UK Infrastructure: A Ten-Year Strategy, and UK Trade Strategy. The strategies rightly set out ambitious plans that will help unlock investment, deliver productive jobs, and boost sustainable growth.
This ambition must now be complemented with delivery in the here and now and recognition of the critical role business must play in the shared growth mission. With the business tax burden at a 25-year high, there is no scope to turn to the business community once more to address the fiscal pressures faced. Instead, we are calling on the government to take a strategic approach to the tax system and avoid tinkering around the edges. Now is the time to simplify our tax code, ensuring the tax system best supports growth.
Shifting the dial on growth will also involve delivering interventions that position businesses of all sizes to invest, hire, and scale. We present a focused list of 12 policy interventions that will help businesses achieve these outcomes. From continuing to unblock delays in our planning system stalling infrastructure delivery, to broadening business support available to reduce crippling energy costs, and supporting young people not in education, employment, and training (NEETs) into the workforce - our submission makes clear the pro-business policies our members want to see the Chancellor deliver.
Summary of our Budget recommendations
Fast-track infrastructure
High quality economic and social infrastructure is one of the strongest enablers of economic growth. Yet, members still report challenges in the planning system delaying Critical National Infrastructure (CNI) delivery, the government's public-private partnership risk aversion curtailing private investment, and critical gaps remaining with the government's full expensing regime.
Back CNI through primary legislation and recruit an additional 600 planners
The government should use primary legislation to directly approve high-impact CNI projects. This would allow Parliament to bypass drawn-out Development Consent Order (DCO) processes in cases where there is overwhelming national interest. This could take the form of hybrid bills, special acts, or inclusion in wider legislative vehicles - as was achieved with HS2, the Elizabeth Line, and the Channel Tunnel Rail Link. Planning reforms must also focus on how best to support mobile investment.
The government should also build on the recruitment of an additional 300 planners, announced at last year's Budget, with the CBI recommending an additional 600 planners to overcome chronic Local Planning Authority shortages.
Develop and deliver the next generation of public-private partnership (PPP) models
Whilst the government has provided a welcome outline of where it sees the potential for PPPs, our members believe the government can broaden the scope of PPP applicability outlined in UK Infrastructure: A Ten-Year Strategy. Delivering the economic and social infrastructure - from roads to health centres - needed to support our growth ambitions will require a mixed market of PPP models.
Extend full expensing to include leased and rented assets
Full expensing currently excludes leased assets, which are used by several sectors key to economic growth like construction and agriculture, and are also more commonly used by smaller businesses for whom it makes more financial sense to lease machinery rather than buy outright. These businesses could significantly benefit from price reductions for their machinery if leasing companies could claim full expensing on their machinery, allowing them to access more, more quickly. It could also have green implications when it allows businesses to access greener alternatives more quickly, for example electric vehicles.
Maximise workforce potential
High quality investment in people’s skills and wellbeing is as critical to growth as investment in infrastructure. Skills development fuels productivity, innovation, and labour market mobility, while wellbeing underpins retention, resilience, and engagement. Yet, members still report challenges in rigid rules preventing them from using Growth and Skills Levy and Immigration Skills Charge funding to deliver training that best meets business and workforce needs. More also needs to be done to support employees’ access the health and support they need.
Unlock the Growth and Skills Levy, committing 100% of the levy take to skills and training
All funds collected through the Growth and Skills Levy should be used exclusively for skills development. Available data on levy allocations suggests that at least some of the full levy take and unspent levy funds are not allocated to skills and are being held back by the Treasury.
Use money raised through the Immigration Skills Charge to support skills delivery
The money raised through the Immigration Skills Charge should be allocated towards skills delivery. Since its introduction in 2017, over £1.5bn has been raised through the Immigration Skills Charge, but there is limited evidence showing this funding is being used to support businesses deliver more workforce training. Refocusing revenue, the government can help deliver on its promise to use the Immigration Skills Charge to incentivise business investment in training and reduce employers’ needs for overseas workers.
Expand tax-free employee health support
The UK’s tax system currently limits businesses from investing effectively in preventative health measures for employees. Our measures would not only reduce workforce attrition due to ill health but also deliver significant fiscal returns. With millions affected by long-term conditions, our changes would support both economic resilience and public health.
Scale technology
The development and adoption of innovation and technology are among the most powerful enablers of productivity growth. Yet, members still report the need for more action to accelerate the diffusion of technology across sectors of the economy, shortcomings around the UK’s current R&D tax regime excluding capital investment, and risk averse procurement processes delaying innovation uptake.
Lead development of a national technology adoption plan and deliver technology adoption support for all sectors of the economy
The UK continues to underperform on productivity and technology adoption due to persistent barriers around skills, infrastructure, and finance, and fragmented government support initiatives. A coordinated National Technology Adoption Plan – anchored in the Department for Science, Innovation and Technology (DSIT), with clear ownership, tailored sectoral support, and alignment with public investment – will support and encourage businesses to invest in innovation with confidence, driving growth and productivity. Launching sector-specific technology adoption support programmes across the economy will further support the uptake of productivity enhancing technologies.
Expand R&D tax credits to include capital spending
Businesses should be able to claim R&D tax credits for capital expenditure which are intended for use for qualifying R&D. The CBI has been calling for the government to review its approach to the scope of R&D to better support those building facilities in the UK since 2017 and has explicitly called for capital spending to be included for the last six years. It has the support of many of the most innovative businesses in the UK, across key sectors from the industrial strategy, including life sciences, advanced manufacturing, clean energy industries, digital and technologies, and defence.
Use government procurement as a strategic lever to scale innovation
Public procurement, worth over £300bn annually, should be one of the UK’s strongest levers for innovation. Recent commitments – such as a 10% innovation target in defence and signals for the eight Industrial Strategy growth sectors – are welcome, but too limited in scope. Current practice remains constrained by risk aversion, fragmented processes, and a bias toward established solutions, preventing government from acting as the anchor customer that can pull innovation through to market.
Boost competitiveness
Energy costs, export barriers, and persistent challenges to competitiveness in the UK’s public markets are continuing to constrain economic growth. Members tell us that energy cost support made available is narrow in its focus. A lack of information, high administration costs, and difficulty navigating regulatory requirements are key obstacles to exporting, and capital is continuing to flow out of UK equities given perceptions that UK public markets undervalue firms compared to private equity.
Drive business adoption of electrification technologies through a targeted discount scheme that enables electrification of processes
High energy and operating costs continue to deter businesses from investing in electrification technologies essential for decarbonisation. The closure of the Industrial Energy Transformation Fund has left a critical funding gap, particularly for firms not eligible for the British Industrial Competitiveness Scheme. To accelerate technology adoption and support emissions reduction, a targeted discount scheme that enables electrification of processes is urgently needed to support these businesses in overcoming financial barriers to electrification.
Back businesses by reducing risks attached to engaging in international trade
UK businesses face barriers in accessing global opportunities due to underfunded trade promotion efforts and outdated, fragmented trade processes. While trade missions and delegations can unlock new markets, build relationships, and drive export growth, current funding is insufficient to meet demand in a complex geopolitical environment.
Improve the liquidity and competitiveness of the London Stock Exchange and strengthen the IPO pipeline
Despite being the world’s second largest market by many measures, the London Stock Exchange (LSE) faces sustained declines in IPO volumes, net equity outflows, and reduced liquidity. UK-specific challenges – including domestic institutional investors allocating away from UK equities, a steady decline in listed companies due to public-to-private transactions, investor preference for dividends over growth reinvestment, and scale-ups seeking listings abroad – have compounded global shifts towards private equity, passive investment strategies, and US market dominance.
