We caught up with Louise Hellem, our Director of Economic Policy, to find out how we built the business case behind one of the CBI’s biggest Budget asks.
06 Mar 2023, 4 min read
Q. We’re asking for a successor to the Super-deduction, which ends in April, just when the Corporation Tax rate is set to increase by six points. Why is this so important?
A. This is all about the UK maintaining its global tax competitiveness and avoiding the drop in business investment that is so crucial for growth and jobs.
Q. Is there any evidence that the Super-deduction has worked?
A. Yes. We conducted a survey of our members last year, which showed a fifth of business investment planned while it was in place would not have happened without it – with another fifth brought forward to benefit from it. And we’re talking about the kind of investments that improve efficiency and boost productivity.
Q. So what are we suggesting the replacement could look like?
A. We’re asking the government to introduce full expensing on a permanent basis for capital investment – that means a business can
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