We update this impact report regularly to reflect key CBI wins as we work with government to deliver the change business needs to see
At the CBI, we work tirelessly to ensure that our members’ voices are heard by government, resulting in direct policy wins that foster growth, reduce costs and improve the business environment across the UK.
- Permanent super-deduction to charge business investment: In March 2024, we secured key wins in the Spring Budget, with the confirmation that the super-deduction – a vital incentive for businesses to invest in capital – will be made permanent. This change is set to bolster investment across industries, providing certainty and encouraging long-term growth.
- Greater funding security for childcare providers: We successfully campaigned for greater funding certainty for childcare providers, which will support the rollout of free childcare. This policy change is a game-changer for employers, enabling skilled workers, particularly parents, to return to the workforce and help businesses attract and retain top talent.
- Labour's Business Tax Plan reflects business asks: In July 2024, we saw further progress as Labour’s Business Tax Plan directly referenced many recommendations from our 2023 Business Tax Roadmap. By aligning with our proposals, the plan offers businesses much-needed clarity on tax treatment and safeguards critical incentives that encourage investment.
- Pledge to overhaul UK planning system: Rachel Reeves’ maiden speech to the Treasury echoed our calls for transformative measures to overhaul the UK’s planning system, ensuring businesses can navigate planning with greater ease and efficiency.
These wins aren’t just policy changes; they’re real, tangible benefits for businesses across the UK. From securing tax incentives that drive investment to creating the conditions for a stronger workforce, the CBI continues to deliver for its members by shaping the policies that power progress.
Creating a more competitive and supportive business environment
Business tax plan assured
What we delivered
Labour has committed to a business tax plan. This plan aims to provide certainty to businesses regarding their tax treatment, safeguard key tax incentives crucial to business investment, and enhance the UK's attractiveness for investment, business establishment and growth. It includes promises for significant reforms to business rates and the digitisation of the tax system, which are expected to boost productivity and lower barriers to investment.
The CBI's Business Tax Roadmap, published in July 2023, is referenced multiple times in Labour's business tax plan. The CBI's tax team engaged with Labour economic advisers and shadow ministers to emphasize the necessity of such a roadmap and to provide input on its content.
What we’ll do next
The CBI will continue collaborating with Labour, as well as other political parties, to ensure cross-party consensus regarding the importance of a comprehensive tax plan.
Business rates reform pledged
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 also hampers growth opportunities. Labour's proposal aims to create a system that encourages investment, tackles vacant properties and supports entrepreneurship. The CBI actively collaborated with Labour, 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 informed about our ongoing business rates reform project.
What we’ll do next
Looking ahead, we'll work closely with Labour to push forward with business rates reform. Our strategy will be guided by insights from our ongoing business rates reform project, aimed at making the system fairer and more competitive for businesses across England.
Planning strategy delivered
What we delivered
Planning is a perennial issue that is stifling growth. The current system is considered too slow and cumbersome, adversely impacting the delivery of much-needed housing, infrastructure, and decarbonisation projects. If the UK wants to be a world leader in the built environment and unlock growth, this must change. Undertaking planning reform offers an opportunity to reinvigorate delivery and ensure planning is rightly treated as an economic enabler rather than a political issue.
In the Spring Budget, the Chancellor responded to calls from the CBI to develop an overarching strategy for planning by launching an accelerated planning system consultation. This initiative aims to unlock trapped investment by giving construction firms the confidence needed to invest in England’s housing stock, helping to alleviate the housing crisis and plan for vital national infrastructure. In Scotland the Government launched a consultation on resourcing Scotland’s planning system.
What we’ll do next
The CBI is launching an infrastructure working group focused on shaping CBI policy on critical national infrastructure. We will continue to urge the government to prioritise publishing a UK strategy for accelerating the delivery of key infrastructure projects to unlock investment and enable economic growth.
Long-term strategy to deliver infrastructure projects created
What we delivered
The future of delivering critical national infrastructure has become uncertain. Examples include the cancellation of HS2 north of Birmingham and ongoing concerns about major net-zero projects such as carbon capture, utilisation and storage, and further offshore wind development.
The CBI contributed to Labour's consultation with industry, including on the Major Projects Capital review reflecting the views of its members, including a key recommendation to boost institutional oversight via stronger central coordination through the Major Projects Group.
Following a consultation, Labour has proposed merging the National Infrastructure Commission and the Infrastructure and Projects Authority into a new body: the National Infrastructure and Service Transformation Authority (NISTA). NISTA would be responsible for developing and delivering a long-term strategy for critical national infrastructure. If implemented, this should provide greater long-term certainty, allowing firms to plan for workforce development, build supply chains and ultimately manage costs more efficiently.
What we’ll do next
The CBI will convene its new Infrastructure Working Group to make sure we're vocal on member priorities, and we'll continue to engage with Labour and the opposition to progress change.
Full expensing for leased and rented assets extended
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 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 through engagement in Treasury working groups, collaboration with trade associations, and surveys of businesses to highlight the positive impact an extension could have on investment.
In the 2024 Spring Budget, the government committed to extending full expensing to leased and rented assets when fiscal constraints permit and is consulting on the specifics of this extension. This move will enable these businesses to benefit from lower costs and to increase investment, thereby stimulating commercial activity.
What we’ll do next
The CBI continues to collaborate with HM Revenue & Customs (HMRC) and HM Treasury (HMT), maintaining pressure on the government to fulfil its commitment.
Devolution settlement secured
What we delivered
As a long-standing supporter of devolution and elected mayors, the CBI welcomed the announcement at the Spring Budget of a new Level 4 ‘trailblazer’ devolution deal with the North East Mayoral Combined Authority. Level 4 devolution provides each mayor with a single pot of funding, greater autonomy and more regionalised decision-making to fund opportunities and initiatives that will drive regional growth. This new level of devolution means more tailored support and resources for businesses, fostering an environment where they can thrive. Going forward, the CBI will support the roll-out of additional Level 4 devolution deals to all Mayoral Combined Authorities that seek them.
What we’ll do next
The CBI is committed to working alongside the UK Mayors Group to deepen our collaboration with Mayors and MCAs across England. Our goal is to power up every region of the UK, driving business investment and economic growth. We see a tremendous opportunity to forge a new strategic partnership between business and mayors, who as national leaders can drive impactful changes. The CBI believes that when politicians, the public and private sectors collaborate, each region can unlock its full potential.
The CBI will continue to advocate for additional trailblazer devolution settlements for Mayoral Combined Authorities that want them. We also aim to deliver a new industry-partnered Mayoral Economic Compact, aligned to a UK industrial and trade strategy, leveraging the transformational role of UK mayors. This initiative is designed to ensure that businesses receive the support they need to grow and succeed, while also contributing to the economic development of their regions.
AI funding and ‘hub’ pilot to support businesses promised
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 in last year's consultation response.
This includes £10m to support regulator capacity, funding for a collaboration with the US, and moving ahead with a pilot 'AI and Digital Hub' (the CBI had suggested an AI Governance Hub). This will be a multi-agency service to support public and private businesses with regulatory guidance, and establish a new steering committee to coordinate with government and regulators.
What we’ll do next
The CBI will continue to work alongside DSIT to ensure the implementation of the White Paper response and any further consultations. Our members who are part of the AI and Data Protection Working Group will share their perspectives following the White Paper consultation response.
VAT relief for business donations consultation announced
What we delivered
On 18 April, the government announced it would publish a consultation on a new VAT relief aimed at encouraging businesses to donate everyday items to charity. Currently, businesses that donate goods (surplus/unsold stock, etc.) to charities face a VAT charge if those goods are given away for free.
Other organisations have been advocating for this VAT relief for some time. The CBI began developing its own version of the policy in 2023, leveraging its in-house tax expertise. The CBI included this proposal in the 2023 Autumn Statement and the 2024 Spring Budget submissions.
The tax team held meetings with HMT to discuss the CBI's proposal, which addressed many of HMT's concerns about the unintended consequences of introducing the relief. Notably, the CBI was the only body to provide a fiscal costing of the measure, a critical factor in HMT's serious consideration of the proposal.
What we’ll do next
The team will continue to collaborate with the CBI’s Indirect Taxes Working Group members to respond to the consultation once it is published.
In July, the CBI will gather member insights and continue meeting with HMT to fill any data gaps, enabling the Minister to approve the tax relief.
Regionalist approach to economic growth endorsed
What we delivered
We launched business manifestos in all 10 English regions holding mayoral elections, developed in partnership with CBI members and building on our general election manifesto which was published in November 2023. Manifestos were shared in advance with all mayoral candidates. In addition, working in partnership with the other main business groups, we organised electoral hustings in 7 of the 10 mayoral constituencies.
What we’ll do next
In July we will host our first mayoral summit, inviting all 12 English regional mayors along with a small number of very senior business leaders to develop a collaborative approach to inward investment and regional industrial policies. The Domestic Competitiveness policy team will continue to engage with mayoral combined authorities to help shape future economic growth strategies.
Planning system in Scotland accelerated
What we delivered
The Finance Secretary of Scotland, Shona Robison, has committed to accelerating the planning system. This initiative involves working closely with local authorities and business organisations to eliminate blockages in the planning process, thereby supporting projects in going live more swiftly. This success follows a one-to-one meeting between the CBI and the Finance Secretary in December 2023, held prior to the announcement of the Scottish Budget.
What we’ll do next
The CBI will continue to engage with the Finance Secretary, providing member insights to drive this initiative forward. Further discussions and collaborations with relevant stakeholders will be pursued to ensure the effective implementation of these changes.
Support for innovative startups extended
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 and scaleups. Following our advocacy, HM Treasury has agreed to delay this clause for an additional 10 years, providing much-needed certainty for businesses seeking investment to grow.
What we’ll do next
While the sunset clause has been successfully extended, the CBI will continue to engage with HM Treasury to advocate for a review of the existing limits on these schemes. Our aim is to enhance support for startups, enabling them to scale effectively and drive innovation in the UK.
China’s inclusion in Foreign Influence Registration Scheme delayed
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 across all sectors about the scope of the legislation and the potential impact on their operations. The delay will provide additional time for consultation, ensuring that businesses can voice their concerns and that appropriate steps are taken to mitigate the impact.
What we’ll do next
The CBI will continue working with stakeholders to influence the government’s approach to China, particularly in the context of Labour’s upcoming audit of the UK-China relationship. The outcome of this audit is expected to shape the future direction of the Foreign Influence Registration Scheme, and we will remain actively involved to ensure the interests of our members are safeguarded.
Trade and industrial strategy aligned
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 from our members for a stronger link between industrial and trade policy, as highlighted in the CBI’s Blueprint for UK Competitiveness. By aligning these strategies, the government aims to boost economic growth and deliver on business priorities.
What we’ll do next
The CBI will continue to engage with the Department for Business and Trade (DBT) as the Trade Strategy takes shape, ensuring that members’ interests are represented throughout the process.
Tax system simplification and modernisation commitment received
What we delivered
In a written statement, HMRC minister James Murray confirmed the government’s intention to invest in both HMRC’s compliance efforts and its technology infrastructure. This commitment will enhance the efficiency of HMRC and improve taxpayers’ experiences. Murray also announced reforms aimed at simplifying the tax system, closing loopholes and reducing non-compliance by designing it out before it occurs. This marks a significant shift from the earlier Labour report, Closing the Tax Gap, which placed the focus solely on large business tax compliance. The new approach reflects the CBI’s input through roundtables and direct discussions, emphasising the importance of tax simplification, policy rethinking and improved customer service.
What we’ll do next
The CBI will continue engaging with the minister and his team to ensure these promises are fulfilled, ensuring that tax simplification and digitisation become integral to policy design in the future.
Building a high-productivity, high-skill workforce
Further funding for childcare guaranteed
What we delivered
In the 2023 Spring Budget, the Chancellor announced the extension of funded childcare hours to support increased parental engagement in the labour market.
In the 2024 Budget, the Chancellor confirmed, following representations from the CBI on behalf of our members, that hourly rates will be paid to childcare providers to support the delivery of the 30 hours funded childcare expansion. This commitment represents an estimated additional £500m of investment over two years. It demonstrates the government's ongoing commitment to supporting and incentivising parents returning to work, thereby enabling businesses to retain skilled talent.
What we’ll do next
The CBI will collaborate with the government to understand the specific rate given to providers for delivering the childcare expansion to 30 hours of funded childcare, and to assess whether that rate is sufficient. Additionally, the CBI will continue to support the overall implementation of this initiative.
Commitment to maintaining National Living Wage pledged
What we delivered
The Conservative manifesto pledged to maintain the National Living Wage (NLW) at two-thirds of median earnings for each year of the next Parliament. This echoed the CBI's own Business Manifesto, which called for the NLW to be held at two-thirds of median earnings to protect the gains it had made towards equality. Simultaneously, this will give businesses more space to invest in the productivity growth required to raise pay sustainably.
The CBI has made numerous contributions to Low Pay Commission (LPC) NLW submissions and oral evidence sessions and participated in various meetings with key sector stakeholders, civil servants and officials.
What we’ll do next
The CBI will give oral evidence to the LPC in the autumn, which will include representations on the 2025 NLW rate and businesses' views on what the LPC's remit should be beyond 2025.
Pension funding regulation improved
What we delivered
The government has improved the final regulations underpinning defined benefit (DB) pension schemes in line with the CBI’s recommendations.
The new regulations address member concerns that the regime would result in unnecessary overfunding and de-risking of DB pension schemes at the expense of employers' sustainable growth.
These improvements are based on the CBI’s response to the Department for Work and Pensions’ (DWP) consultation on the regulations, as well as two consultations on The Pensions Regulator’s DB Funding Code and multiple private meetings with responsible civil servants.
What we’ll do next
The CBI will continue to engage with members and the DWP as the new regime is implemented to ensure it operates effectively.
New Growth and Skills Levy introduced
What we delivered
The government announced a new Growth and Skills Levy to replace the existing Apprenticeship Levy, addressing concerns from our members about its restrictive nature. This new levy will broaden the range of training options available for funding, enhancing flexibility for employers and learners alike. Additionally, it will permit shorter duration and foundation apprenticeships, enabling training programmes that can adapt to the needs of businesses and individuals, rather than adhering to the minimum 12-month duration previously required.
What we’ll do next
The details of which courses will be eligible for funding under the new levy will be determined by the forthcoming Skills England body, set to take full effect in Spring 2025. In the interim, the CBI is advocating for immediate flexibility in levy spending to allow businesses to start utilising their funds more effectively without delay.
Defunding of key qualifications paused
What we delivered
The Department for Education (DfE) had planned to defund 134 qualifications that overlapped with the first 10 T Levels introduced in 2020 and 2021. Following CBI’s public support for a pause and review, this reform has been postponed, allowing alternative courses in construction, digital, early years and health to continue for the 2024/25 academic year. This decision protects high-quality courses in demand by both training providers and industry, addressing labour shortages and ensuring a skilled workforce to boost productivity.
What we’ll do next
The CBI will continue to engage with the DfE and collaborate with trade bodies to input into the review , which is due to be completed by the end of the calendar year, aiming to ensure it results in the right outcome for businesses and education providers.
Advancing green growth and energy solutions
Socialisation of connection charges to the grid in Northern Ireland indicated
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 have highlighted this as an issue for investment in projects, as it places companies at a disadvantage compared to their neighbours 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.
Planning reform and support for industrial decarbonisation in Scotland progressed
What we delivered
CBI Scotland successfully 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.
Mission Control delivery body created
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.
