Impact

We secured changes to Employment Rights Bill proposals on fire and rehire, collective redundancy, and and the introduction of a 6-month qualifying period for unfair dismissal, reducing the most damaging impacts on growth and investment.

The CBI played a key role in securing an expansion to the British Industrial Competitiveness Scheme (BICS), with the Business Secretary recognising our contribution.

The scheme will have expanded eligibility with backdated payments, and is a significant step towards addressing the high energy costs that are placing growing financial pressure on UK businesses.

However, this is a targeted measure and bringing down energy costs for all UK businesses depends on lasting reform, which the CBI will continue to campaign for, alongside Energy UK.

Securing a workable approach to business payment terms 
CBI engagement has ensured large-to-large and international transactions will be exempt from mandatory 60-day payment terms – avoiding risks to working capital and viability across complex supply chains. It shows how the CBI engages early to shape policy and secure a practical environment for business. We’ll continue to engage with both the government and members on the rollout of the policy. 

A £1.6bn HMRC digital upgrade will streamline tax processes, reducing administrative burden and saving businesses significant time and effort.

On 23 June, government confirmed plans to digitise VAT options to tax notifications by the end of 2026, following sustained CBI campaigning. The move will replace paper-based processes, making it easier for businesses to manage, improving accuracy and speeding up processing times. Further reviews of scale rates and PAYE settlement agreements were announced, and the CBI will continue to provide evidence and push for outcomes that give business more certainty and control of their tax ecosystems.

CBI engagement through the Employment Taxes Working Group has also driven practical reforms that cut admin, complexity and cost at scale. Changes to workplace benefits, reporting for short-term business visitors, and a long-awaited mileage rates review will save businesses thousands of hours each year. This demonstrates how sustained, evidence-led engagement can deliver meaningful improvements for employers.

Reform of the Apprenticeship Levy into a broader Growth and Skills Levy gives employers greater freedom to invest in a wider range of training programmes.

Businesses need an environment where costs are minimised, regulatory rules are clear and decisions make economic sense. Yet under the previous VAT rules, donating surplus goods could trigger a VAT charge of up to 20%, alongside additional compliance requirements.

For many manufacturers, wholesale distributors and retailers, this created an irrational position - donating goods to charity could be more costly than wasting them, even where those goods were perfectly usable.

Following CBI camapigning, from 1 April 2026, a new VAT relief allows businesses to donate surplus goods to registered charities for free distribution or use in charitable services without triggering a VAT charge.

This reform removes a long‑standing inconsistency in the tax system and delivers a practical reduction in the cost of doing business, supports communities and benefits the circular economy.

Supported by a national YouGov survey of over 1,300 businesses, CBI analysis estimates that the change will generate £72.5m in additional goods donations in 2026/27 alone.

Find out more.

An uplift in public R&D funding will help crowd in private investment, supporting innovation and long-term business growth.

The government extended Jobs Guarantee eligibility to age 24 – covering 100% of employment costs for 25 hours a week at the relevant minimum wage. This significantly broadens the talent pipeline available to employers while helping more young people into sustained employment. Join the Education & Skills Working Group to get involved in our work. 

The Prime Minister and Taoiseach have agreed to work towards a UK-Ireland agreement to address cross-border employment challenges. This follows CBI and Ibec convening both leaders at the UK-Ireland Summit, including a business roundtable attended by CBI members, helping to reduce barriers and support talent mobility across the Irish Sea. Explore our international work.  

The CBI supported members through disruption while taking business insights directly to the highest levels of the government to shape decision-making, including the Chancellor, Cabinet Office and No10.

The CBI’s live business pressures heatmap was used by more than 400 government stakeholders and officials to monitor real-time pressures facing firms across the UK. This insight informed resilience planning and strengthened the evidence behind government decisions on energy, supply chains, growth and competitiveness.

£14.2bn investment in Sizewell C supports long-term energy security while creating jobs and opportunities across UK supply chains.

The CBI helped secure UK recognition in the EU’s Industrial Accelerator Act, supporting market access and competitiveness for UK firms.

Nine CBI asks  were adopted in EU-UK Common Understanding, and our work ensured UK inclusion in the Made in Europe agenda.