CBI urges Chancellor to take steps to stimulate investment

The Confederation of British Industry (CBI) has said it is essential that ministers lay out plans for a “pro-enterprise agenda” in the months ahead.

The organisation this week published a submission setting out what it believes should be the Government’s top priorities in the forthcoming Autumn Statement.

The CBI has made clear that the Chancellor needs to “stimulate confidence and investment” to ensure that the economy remains on track during a time of considerable uncertainty.

Among the business body’s suggestions include a policy of using business rates to incentivise investment, “super-charging” the R&D tax credit system and increasing the Annual Investment Allowance (AIA) to £1million until the end of 2018.

Carolyn Fairbairn, the CBI’s Director-General, said: “The Chancellor should capitalise on the UK’s core strengths, setting out a pro-enterprise agenda that instils confidence and kick starts investment.

“With huge variations in productivity between different parts of the country, the top priority must be to set out a programme that will get our regions firing on all cylinders and supports businesses to innovate, invest and create jobs in the years ahead.”

Ms Fairbairn said that Philip Hammond should make a “stable and competitive” tax system a key plank of his economic policy, which would help cement the UK’s standing internationally.

“To create stability, the Chancellor should set a high bar for tax changes, focussing on targeted measures that address the current economic challenges: supporting investment and productivity growth.”

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Adam Cramer

Adam Cramer

Partner at Wilson Wright