Back business to unlock investment and power prosperity – CBI Budget Submission

Ahead of the Autumn Budget, the CBI is calling on the Chancellor to give firms ‘breathing space’ by delivering a decisive set of measures that bolster business confidence, unlock investment and turn the government’s growth ambition into action.

With firms still facing heightened energy, employment and tax costs, the UK’s leading business organisation says the priority should be to create the headroom and certainty businesses need to invest, not add to that pressure with new or increased taxes.

With the IMF warning that Britain’s tax burden is already heading towards historic highs, the Chancellor should be wary of asking business to shoulder more. Higher costs today risk becoming lower investment, fewer jobs and weaker growth tomorrow.

The CBI’s Autumn Budget Submission sets out a targeted package of measures to cut critical business costs, unlock private investment, accelerate innovation and strengthen productivity – helping to drive growth that can be felt by businesses, workers and communities across the country.

The CBI will stress that growth comes from giving firms confidence to act. A Budget that lowers barriers to investment and hiring can help turn business ambition into stronger growth, higher wages and rising living standards. Key recommendations include:

(1) Cut business electricity costs.

• Remove policy costs from non-domestic electricity bills, as well as the electricity element of the
  Climate Change Levy, from April 2027.

(2) Make it easier to create junior and entry-level jobs.

• Raise the employer National Insurance Contributions secondary threshold by £1,000, from £5,000 to £6,000, to reduce employment costs and support routes into work.
• Make it tax-free for employers to offer health and wellness support to prevent ill health
  and keep more people in work.

(3) Reform business rates and commit to wholesale business tax simplification.

• End the merry-go-round of piecemeal and sectoral changes to business rates by setting out a clear path towards structural reform. This should be based on the 2025 Business Rates and Investment Call for Evidence.
• The Budget should tackle the most damaging business rates cliff edges and strengthen investment reliefs now, while committing to a fairer and more incremental system over the course of the parliament.
• Commit to working with the CBI to make the tax system simpler and less burdensome for both business and HMRC, expand schemes that give firms greater upfront certainty about their tax bills, and streamline IR35 rules.

(4) Make government delivery investable.

• Pilot a Growth Delivery Framework across key business-facing public bodies, with service standards, accountable owners and clear escalation routes.

(5) Mobilise private capital for national and local renewal.

• Publish a modern public-private partnership roadmap, establish a delivery centre of excellence and coordinate public financial institutions around investable pipelines to support local and national priorities.

(6) Turn AI strengths into economy-wide productivity.

• Create a time-limited Business AI Adoption Delivery Group feeding into the Prime Minister’s AI Adoption Taskforce to accelerate adoption across the private sector.

Rain Newton-Smith, CBI Chief Executive, said:

“The Autumn Budget is the first opportunity for the Burnham government to turn its economic ambitions into action. Businesses stand ready to invest, innovate and create jobs, but they need the right conditions and confidence to do so.

“With fiscal headroom in short supply, every decision should be judged by whether it strengthens the foundations for long-term growth. Business costs ultimately become household costs, so adding further pressure to businesses already facing significant cost pressures would make that task harder. By tackling some of the biggest barriers facing firms, the government can instead create the conditions for investment, expansion and hiring.

“That's why we're asking the Chancellor to be decisive in charting a clear path to growth. Indecision and delay have a cost: investment is postponed, recruitment plans are put on hold and opportunities are lost. The rewards for getting this right are significant and would be felt by households and businesses up and down the country.

“Business does not need another reason to wait – it needs a reason to invest. This Budget should cut the costs holding firms back, simplify the tax system and make it easier to get investment moving. Get those conditions right and businesses will respond with more jobs, more investment and stronger growth across the country.”