CBI impact in 2024: powering progress

What we delivered

Long called for by the CBI, the Corporate Tax Roadmap sets out a more predictable tax regime by capping the headline Corporation Tax rate at 25% for the rest of Parliament and maintaining the generosity of key investment reliefs such as permanent full expensing, Annual Investment Allowance, R&D tax credits and the Patent Box. Smaller companies will welcome confirmation that the Small Profits Rate of 19% will not increase. This certainty, plus the shift to a single annual Autumn Budget, will boost business confidence to invest in the longer term after years of fluctuating tax rates and allowances.  

What we'll do next

As featured in the Corporate Tax Roadmap, the CBI will work with the government and members early next year to input into the design of a new advance ruling service that will give greater certainty on the tax treatment for large business investment projects. We will also push for digitalisation of manual HMRC processes and simplification opportunities across the tax system. 

What we delivered

In their 2024 manifesto, the Labour Party pledged to overhaul England's business rates system — a longstanding priority for the CBI. Members voiced concerns over the current system: it discourages investment in commercial properties, adds unnecessary complexity, and burdens businesses with administrative hassles. The uncertainty it creates hampers growth opportunities. The government’s Discussion Paper, published at the Budget, identifies priority areas for further reform which mirror the CBI’s proposals as set out in our Business Rates Reform Report. This is no coincidence and is a result of our active collaboration with government officials and the Labour Party both before and after the general election, including hosting James Murray MP, then Labour's Shadow Financial Secretary to the Treasury, for a roundtable discussion. These engagements were vital in keeping Labour and government officials informed about our business rates reform project.

What we’ll do next

We'll work with our members and feed into the government’s Discussion Paper on transforming business rates. We already have a strong cross-sectoral member mandate on most aspects, including moving to a progressive slice-based system of taxation, making business rates investment-friendly, streamlining reliefs and exemptions, and prioritising Valuation Office Agency transparency and performance. 

What we delivered

The future of critical national infrastructure faced significant uncertainty, with the cancellation of HS2 north of Birmingham and growing concerns about key net-zero projects like carbon capture and offshore wind development. Ahead of the election, the CBI ensured members’ voices were heard by contributing to Labour’s industry consultation. One of our key recommendations was to strengthen central coordination through the Major Projects Group.

As a result of our efforts, Labour proposed merging the National Infrastructure Commission and the Infrastructure and Projects Authority into a new body: the National Infrastructure and Service Transformation Authority (NISTA). This organisation will oversee the development and delivery of a long-term strategy for critical national infrastructure.

What we’ll do next

Since the election, we’ve launched the new Infrastructure Working Group to give members a platform to shape the strategic infrastructure plan and explore innovative public-private partnership models for delivery.

We are also engaging directly with government to champion members’ priorities and drive progress.

To join the Infrastructure Working Group and ensure your voice is part of this vital conversation, contact Josh Male or Mark Goldstone today.

What we delivered

Businesses that lease or rent capital assets, common in sectors like construction and agriculture, and prevalent among SMEs lacking the financial capacity to purchase assets outright, are currently excluded from full expensing. This exclusion inhibits vital investment and creates an uneven playing field.

Following the delivery of permanent full expensing, the CBI’s headline recommendation for the 2023 Autumn Statement, the CBI began advocating for extending the policy to leased and rented assets. In the 2024 Spring Budget, the government committed to extending full expensing to leased and rented assets when fiscal constraints permit. This position was confirmed by the new government at the 2024 Autumn Budget. This move will enable these businesses to benefit from lower costs and to increase investment, thereby stimulating commercial activity.

What we’ll do next

We'll stay plugged into the government’s plans to publish the draft legislation for extending full expensing to leased and rented assets. 

What we delivered

The Chancellor introduced measures to support businesses in adopting technology, including new funding for tech adoption pilot programmes, confirmation of the regional rollout of Made Smarter, and £37m for Made Smarter Innovation. A review on barriers to adopting transformative technologies was also announced, along with a £500m investment in digital infrastructure.

What we’ll do next

Following a member roundtable with National Technology Advisor, Dave Smith, the CBI plans a follow-up to gather member input for the review. We will collaborate with the Department for Business and Trade (DBT) to develop the tech adoption pilot trials announced in the £4m package, advocating for the expansion of the Made Smarter programme to other sectors.

What we delivered

Public R&D investment increased to a record £20.4bn, including a 4.5% uplift for DSIT’s R&D budget to £13.9bn, while R&D tax relief was maintained, ensuring a steady foundation for future growth. The Chancellor announced funding for a new multi-year R&D Missions Programme (£25m), a Life Sciences Innovative Manufacturing Fund (£70m in 24/25), and significant investments for the aerospace and automotive sectors, emphasising R&D's critical role in driving growth.

What we’ll do next

The CBI will continue to work with the government to advocate for R&D investment and foster an environment conducive to innovation. We will respond to the Industrial Strategy Green Paper consultation and engage with officials to discuss the R&D Missions programme, procurement of innovation, and measures to support scaling innovation, seeking input from members throughout the process. For more information on how to get involved, please contact Kapila Perera.

What we delivered

As a long-standing supporter of devolution and of elected mayors, the CBI welcomes the introduction of the first integrated settlements for both Greater Manchester and West Midlands Combined Authorities from 2025-26.  The aim is to give mayors meaningful local control over funding in a single flexible pot, enabling them to better plan for the future and deliver growth. 

What we’ll do next

Bringing together the majority of representatives from the UK Mayors Group and a similar number of senior business leaders, a Mayoral Roundtable provided the foundations to work in partnership with the Labour government on their policy agenda, including devolution, inward investment, regional productivity, the role of a new Industrial Strategy and its alignment to Local Growth Plans – as well as the recently unveiled Council of the Nations and Regions, plus the mayoral council for England. This is a critical moment for mayors, mayoral combined authorities and devolution more broadly. We passionately believe that now is the right time to embark on a partnership between business and mayors across the country.

What we delivered

The Department for Science, Innovation and Technology (DSIT) has responded to its AI White Paper consultation and committed to implementing several aspects recommended by the CBI. This includes £10m to support regulator capacity, funding for collaboration with the US, and moving ahead with a pilot 'AI and Digital Hub' to support public and private businesses with regulatory guidance.

What we’ll do next

The CBI will continue to work alongside DSIT to ensure the implementation of the White Paper response and further consultations.

What we delivered

The Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) schemes faced a looming sunset clause set for 2025, threatening investments in innovative startups. Following our advocacy, HM Treasury has agreed to delay this clause for an additional 10 years.

What we’ll do next

The CBI will continue to engage with HM Treasury to advocate for a review of the existing limits on these schemes.

What we delivered

The government has announced a delay in its plan to move China to the enhanced tier of the Foreign Influence Registration Scheme. This postponement follows widespread concerns from businesses about the potential impact on their operations.

What we’ll do next

The CBI will continue working with stakeholders to influence the government’s approach to China.

What we delivered

The government’s recent announcement of a Trade Strategy, aligned with the UK’s Industrial Strategy, provides much-needed certainty for businesses. This key development addresses a longstanding request for a stronger link between industrial and trade policy.

What we’ll do next

The CBI will continue to work with the Department for Business and Trade as the Trade Strategy takes shape.

What we delivered

In response to ongoing labour market challenges, the CBI successfully advocated for increased investment in government-funded childcare to support workforce participation. In the 2023 Spring Budget, the Chancellor announced an extension of funded childcare hours, which was further strengthened in the 2024 Budget with an additional £1.8bn over two years. This funding will allow childcare providers to support the delivery of the 30 hours of funded childcare, helping parents return to work and enabling businesses to retain skilled talent.

What we’ll do next

The CBI will work closely with the government to monitor the rate given to providers for delivering the expanded childcare offer, assessing its sufficiency to meet workforce needs. We’ll also continue supporting the implementation of this initiative to ensure it effectively contributes to labour market re-engagement.

What we delivered 

The government has introduced its Employment Rights Bill to parliament. In response to CBI concerns about an impact on firms’ willingness to hire, powers have been taken to introduce a separate legal status for probation periods, which could, if designed carefully, mitigate concerns. There is now a targeting of the new right to a guaranteed hours contract to ‘low-hour’ employees. It is encouraging that changes to employment status do not appear in the Bill and, given their complexity, will be considered further before being introduced. The government has also opted for a more flexible Code of Practice on the Right to Disconnect, rather than introducing a legal change that would impact firms’ ability to offer flexible working.

What we’ll do next 

Critical issues, however, remain within the Bill that will, if not addressed during its passage and in subsequent regulations, materially impact growth. The CBI will continue to engage the government at every level to ensure unintended consequences for hiring intentions, labour market flexibility, restructuring, employee relations, and administrative burden are avoided.

What we delivered

Responding to concerns from CBI members about the restrictive nature of the Apprenticeship Levy, the government announced a new Growth and Skills Levy to replace it. This new levy will increase training flexibility, allowing for shorter-duration and foundation apprenticeships tailored to business needs. The Chancellor also committed £40m to begin these reforms and earmarked £950m for skills capital to support college improvements, as well as £300m for further education. The Lifelong Learning Entitlement (LLE), set to launch in 2027, will further expand access to high-quality, flexible education and training for adults throughout their working lives.

What we’ll do next

The CBI will advocate for immediate flexibility in levy spending to enable businesses to fund a broader range of training solutions, including accredited courses beyond apprenticeships. We’ll also push for transparency around how levy funds are allocated to build business confidence and ensure these resources are effectively used for workforce development.

What we delivered

The government has introduced several new initiatives to support workforce participation and address labour market inactivity. This includes £240m to trial innovative approaches to getting people back into work, alongside a £115m Connect to Work programme designed to help people with disabilities or health conditions secure employment.

What we’ll do next

The CBI will engage with the government as these new initiatives are implemented, sharing feedback from our members to ensure they address barriers to employment effectively. We will also continue to give evidence to the Low Pay Commission and advise government on its future remit, as well as continuing to advocate for an ambitious expansion of tax-free occupational health support to incentivise employers to invest in the health of their workforce and stem the flow of economic inactivity.

What we delivered

Following CBI advocacy, the government postponed plans to defund 134 qualifications that overlap with T Levels in construction, digital, early years and health. This delay allows alternative courses to continue, addressing critical labour shortages and maintaining a skilled workforce, particularly in high-demand sectors. This decision reflects our members' needs and ensures that the education system supports businesses in accessing talent with the necessary skills.

What we’ll do next

The CBI will continue to engage with the Department for Education and collaborate with trade bodies on the review of these qualifications, due for completion by year-end. Our focus is on ensuring the review results in an education system aligned with industry requirements, supporting business productivity and economic growth.

What we delivered

One of the biggest challenges for businesses delivering net zero infrastructure has been navigating delays caused by dealing with multiple government departments. In response to CBI’s calls for changes to government architecture to streamline delivery, the government has announced the creation of Mission Control – the first of its kind cross-department delivery body focused on critical projects under Clean Power 2030. It will troubleshoot delivery blockers for energy projects, act as a central point of contact for businesses and co-ordinate across Whitehall – a key CBI ask.

What we’ll do next

The CBI will engage with Mission Control and its head, Chris Stark, to ensure consistent policy and delivery blockers are addressed and that its work effectively accelerates the delivery of net zero projects.

What we delivered

Access to finance remains a significant barrier for investment in net zero projects, particularly for newer and riskier technologies. The UK Infrastructure Bank (UKIB) has historically provided debt financing to support decarbonisation efforts. Our engagement helped to ensure that the new National Wealth Fund (NWF) has an expanded remit of blended financing options that can support more risk, including performance guarantees and equity investments. This enhancement will increase the likelihood of a broader range of technologies securing funding.

What we’ll do next

The CBI actively collaborated with HM Treasury and UKIB to shape the National Wealth Fund. Our recent member roundtable discussions directly informed ministerial advice, and we will continue to engage with stakeholders to ensure that finance options remain flexible and accessible for all net zero initiatives.

What we delivered

Amid recent net zero announcements, we were pleased to see continued government commitment to decarbonising key sectors. With £3.9bn allocated for carbon capture, utilisation and storage (CCUS), support for the first electrolytic hydrogen production contracts, and £2.7bn for Sizewell C’s development, the government is providing investors with crucial signals on its role in advancing net zero technologies.

What we’ll do next

We will collaborate with the Department for Energy Security and Net Zero (DESNZ) and Mission Control to ensure businesses can share their decarbonisation challenges directly, supporting practical delivery of the Clean Power 2030 initiative.

What we delivered

The government’s Warm Homes Plan, with a £3.4bn allocation for heat decarbonisation and household energy efficiency over the next three years, marks a significant step towards providing the policy certainty businesses have long advocated for. Additionally, increased funding for the Boiler Upgrade Scheme demonstrates recognition of its positive impact. This clarity will help address the challenges homeowners face in accessing capital for energy efficiency upgrades, which in turn supports growth in the heating and insulation market.

What we’ll do next

We’ll engage with government ahead of the Spending Review to secure longer-term funding commitments, ensuring sustained momentum in energy efficiency and avoiding past pitfalls due to short-term policy approaches.

What we delivered

The government’s proposed changes to oil & gas tax policy initially posed significant concerns, threatening to dampen the investment environment, reduce the UK’s competitiveness, and jeopardise our energy security and net zero transition goals. However, alongside the sector, the CBI worked to amplify these concerns. We wrote directly to the now Chancellor of the Exchequer and welcomed Daniel Johnson MSP to speak with our members in Aberdeen, reinforcing the message that a competitive and stable oil & gas tax regime is critical to UK plc, and to delivery on the net zero transition. We also engaged directly in meetings with the Exchequer Secretary to the Treasury, special advisers, senior and junior officials to say the same. Our CBI Budget Submission emphasised that the proposed changes to investment allowances under the Energy Profits Levy were jeopardising plans for long-term investment in decarbonisation, the sector’s supply chain, infrastructure and skills. We also called for proper consultation with affected businesses and for clarity as soon as possible to rebuild investor confidence. It was a welcome relief to see the Government’s decision to retain First Year Allowances at a rate of 100% at the Budget.

What we’ll do next

The CBI will monitor the impact of the changes to the Energy Profits Levy for any unintended consequences.  We will continue to call for sustainable growth, ensuring that the government strikes a balance between energy security and the net zero transition. Our next steps include working with our members to understand how they want to feed into the government’s 2025 consultation on the future of oil & gas windfall taxation.

What we delivered

CBI Scotland influenced key policy areas in the Scottish Government’s Programme for Government, leading to significant wins on planning in particular. The establishment of Scotland’s first Planning Hub will enhance capacity and consistency in decision-making, while a new planning apprenticeship programme will help to create a pipeline of skilled future planners, helping to plug a key skills shortage holding back progress on net zero. Support for manufacturers to decarbonise includes up to £9m in 2024-25 through the Scottish Industrial Energy Transformation Fund, enabling investments to improve energy efficiency. Additionally, there is a commitment to develop a national project pipeline of investment opportunities, with an online investment portal set to launch in 2025.

What we’ll do next

CBI Scotland will continue collaborating with the Scottish government and industry stakeholders to ensure effective implementation of these initiatives. Our focus will remain on delivering tangible benefits for businesses, particularly on planning and skills.

What we delivered

Northern Ireland (NI) is the only nation within the UK and Ireland that does not have socialisation of connection charges to the grid. Members noted this issue hampers investment, placing companies at a disadvantage compared to counterparts in Great Britain and the Republic of Ireland.
The Minister for the Economy of Northern Ireland, Conor Murphy, has indicated that the government will introduce the socialisation of charges. The CBI in NI has been raising this issue with officials and political parties for several years. Specific examples include referencing it in recent consultation responses related to energy, raising it with officials at Energy and EV Working Group meetings, and responding to the Utility Regulator's call for evidence in 2023.

What we’ll do next

There will be further consultation on this issue, and the CBI’s NI team will engage with members to respond to these consultations as they are published.