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    The cost of doing business

    Growth cannot thrive on unstable foundations: a competitive cost base is a strategic necessity.

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    The change we're calling for

    Businesses need the UK to be a place where costs are competitive, rules are clear and investment decisions not blocked by uncertainty. Yet punitive industrial energy costs, tax complexity, regulatory duplication, employment costs and growing pressures linked to cyber risks are absorbing capital that should be driving growth.

    We're calling for a reset of the UK’s cost base through the delivery of long-term reforms to lower industrial energy costs, reductions in employment costs, and cuts to the administrative burden currently stalling growth ambitions.

    Tackling industrial energy costs

    Secure long-term reform to reduce industrial energy costs and provide the certainty businesses need to invest in the UK.

    CBI Impact drumbeat August 2026 Employment Rights Act

    Lowering employment costs

    Find appropriate landing zones on the Employment Rights Act that protect standards while supporting competitiveness and deliver a tax system that works for working people and supports pension adequacy.

    Cutting the administrative burden

    Idenitfy how and where red tape can be cut to support growth, deliver business rates reform and tax simplification, and mitigate costs arising from cyber requirements and business disruption caused by cyber incidents.

    Explore our latest report on business costs

    "The immediate challenge for firms is the high cost of doing business. To ease pressure on firms and unlock economic growth, the government should work with business to address the longstanding issue of high energy costs, ease regulatory burdens, deliver practical solutions on employment rights, and build a simpler, more competitive tax system."

    John Foster, Chief Policy and Campaigns Officer, CBI

    Leadership Team John Foster

    Our work

    CBI reports and interventions to reduce business costs

    Room to Grow: CBI report on business costs

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    Monetary Policy Committee

    Business tax contribution 2024/25

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    Cutting business energy costs: the case for action

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    The business impact of the NICs increase

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    Energy costs in 60 seconds: calculate how clean power will impact your business

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    The Good Regulations Guide Report

    A good regulation guide for a stronger economy

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    CBI Business Rates Reform report 2024

    Business Rates report: a roadmap to to boost growth

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    Our progress and impact

    Jun. 2026
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    Oct. 2024
    Saving time and cost on tax administration
    A £1.6bn HMRC digital upgrade will streamline tax processes, reducing administrative burden and saving businesses significant time and effort.
    Driving action on the cost of fuel
    Secured wins including the extension of the 5p fuel duty freeze and changes to mileage rates that better reflect firms’ operating costs.
    A workable approach to business payment terms
    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.
    Strengthening UK competitiveness through energy cost support
    The British Industrial Competitiveness Scheme (BICS) will have expanded eligibility with backdated payments, and is a significant step towards addressing high energy costs.
    Ending the cost of giving
    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.
    International tax certainty agreed
    Following CBI member input, the UK as part of the OECD's Inclusive Framework of 14 countries committed to a new approach to global minimum corporate tax rates.
    Six-month qualifying period for unfair dismissal
    A major shift in the Employment Rights Bill that protects the purpose of probation periods and supports confident hiring.
    Progress towards fairer business rates
    The government has committed to exploring a slice system, reflecting a flagship CBI recommendation.
    Removal of barriers to employer investment in workplace healthcare
    HMRC has confirmed tax-free treatment for employer reimbursements of eye tests and introduced a new tax relief for employee flu jabs.
    VAT removed on donations of goods
    Fixing a long-standing anomaly so donated stock is no longer taxed, cutting waste and unlocking millions for charities.
    Additional £1.5bn funding for the Warm Homes Plan
    Funding for the Warm Homes Plan was increased at the 2025 Autumn Budget.
    Smarter regulation through AI
    The government is investing in AI-enabled tools to reduce the cost of regulation, improve disease risk management, and streamline grant delivery.
    Click not call – unlocking a digital-first HMRC
    The government confirmed £500m to make HMRC digital-first by 2029.
    Right first time – smarter support to strategically close the tax gap
    HMRC's Departmental Efficiency Plan includes a focus on compliance including in automation, case management tools, self-serve channels, and preventing non-compliance.
    Tackling energy costs
    The British Industrial Competitiveness Scheme will reduce electricity costs for 7,000 eligible manufacturing businesses.
    Reducing the cost of regulation by 25% by the end of Parliament
    An ambition built on government delivering a key recommendation from the CBI’s Good Regulation Guide to audit the current cost of regulation.
    Corporate Tax Roadmap delivered
    Long called for by the CBI, the Corporate Tax Roadmap sets out a more predictable tax regime.