CBI responds to Autumn Statement

Rain Newton-Smith, CBI Chief Executive, said:

“With tough decisions to be made, the Chancellor was right to prioritise ‘game-changing’ interventions that will fire the economy.

“While the move on National Insurance will give hard-pressed households some much needed breathing room, making full capital expensing a permanent feature of the tax system can be transformational for accelerating growth and improving living standards in the long-term.

“Helping firms to unleash pent-up investment is critical to getting momentum into the economy. Making full expensing permanent will give firms the stability they need to press on with decisions on investment whilst keeping the UK at the top table internationally for investment incentives.

“Moves to speed up planning and grid connectivity should also bolster business confidence to invest in high growth areas like green technologies, renewable energy and advanced manufacturing.”

Louise Hellem, CBI Chief Economist, said: 

“With many firms bracing for a significant hike in business rates next year, the Chancellor’s focus on smoothing the edges for SMEs and targeted support for key sectors is understandable, but ultimately leaves a number of firms facing rising costs at a difficult moment in the economic cycle.  

“Merging large and small company R&D tax credits could represent a significant simplification, and efforts to support valuable R&D intensive and loss-making businesses are very welcome as part of efforts to boost the innovative capacity of our economy. However, firms won’t consider this the end of the story with other countries now forging a lead on areas like capital spending. 

“Finally, with inactivity continuing to be a significant drag on economic growth and firms crying out for greater access to people and skills, the focus on occupational health to support people back into work and prevent ill-health is welcome.  

“Firms are ready to play their part, so we hope that the Chancellor doubles down on this agenda at the Spring Budget by better utilising the tax system to activate businesses’ critical role in this space – starting with making Employee Assistance Programmes tax free.”