How the CBI is shaping policy to protect confidence and unlock economic potential
This article will be updated throughout 2025 as the CBI continues to deliver impact for business.
This year, the CBI has driven significant advocacy work to demonstrate what the government can do to boost business confidence, with notable successes including the Spring Statement and Planning and Infrastructure Bill.
In the Spring Statement, Chancellor of the Exchequer Rachel Reeves upheld her promise made at our conference not to increase the burden on businesses – a major win for our members. By securing this commitment, the CBI helped ensure businesses weren't faced with additional financial pressures during a time of economic uncertainty. While tax rises may materialise in the Autumn, the Spring Statement was a crucial moment where we effectively steered the government away from pulling the business tax lever, making clear the ongoing challenges members are facing in mitigating financial pressures.
In parallel, we've made strides on the Planning and Infrastructure Bill, which incorporates several key recommendations from our 'Planning for Growth' report and our response to the National Planning Policy Framework consultation. The Bill includes important measures to ringfence planning fees, streamline planning decisions through delegated decision making, and mandate training for councillors on planning committees. We've also seen the announcement of strategic planning, enabling mayors and local authorities to create spatial development strategies, which will align planning across regions and ensure infrastructure needs are met to support regional economic growth.
As these initiatives move forward, the CBI will continue to push for their implementation, ensuring businesses benefit from a more efficient, predictable planning system and a stable fiscal environment.
January
Unlocking untapped pension surplus
What we delivered
Between £160-240bn is sat untapped in overfunded defined benefit pension schemes. The government has announced plans to enable more schemes to return that surplus to employers so that it can be used for growth.
This is a policy recommendation the CBI has specifically pursued for more than three years, producing briefing papers and raising it routinely with officials and ministers.
What we'll do next
The details of the proposals matter. We'll continue to engage DWP, DBT, and HMT to ensure the changes deliver the refunds needed to shift the dial on growth and investment whilst safeguarding member benefits. Members wanting to be involved can join our Pensions Panel by contacting Laurence Raeburn-Smith.
Challenging an unnecessary levy
What we delivered
The Pension Protection Fund (PPF) collects a £100mn levy from businesses it doesn't want or need to collect. It does so because legislation means charging a 0% would remove its ability to charge a levy in the future, should it ever need to. The government has now pledged to consider proposals to allow the Pension Protection Fund greater flexibility to reduce the levy.
The CBI held many meetings with DWP officials and government advisors. A briefing was created for HMT ahead of the 2024 Budget.
What we'll do next
We hope the government will bring forward the changes in the Pensions Bill expected later this year. In advance of that, the CBI is engaging DWP officials on the details of the proposals.
February
Reducing the apprenticeship minimum duration
What we delivered
The decision to reduce the minimum duration of certain apprenticeships from 12 to eight months will be welcomed by many businesses - particularly those offering lower-level apprenticeships, where a 12-month requirement is often seen as unnecessarily long and a barrier to progression. This change is expected to accelerate apprentices' transition into further study or employment, though it remains unclear which specific standards the reduction will apply to.
We've been calling for a reduction in apprenticeship duration requirements since developing our policy positions as part of last year's Adult Skills Pledge.
What we'll do next
Next, we'll engage members to understand which standards they believe the change should apply to - and whether eight months is still too long in some cases - before feeding this insight back to government.
Improving apprenticeship accessibility
What we delivered
Allowing businesses to decide whether Level 2 English and maths 'passes' are required will help ensure capable apprentices aren't held back by arbitrary academic benchmarks. This change should support more apprentices to complete their training - and make apprenticeships a more accessible route for businesses and individuals with lower-level qualifications.
The CBI campaigned on this issue following the development of policy proposals as part of the Adult Skills Policy Pledge.
What we'll do next
We'll continue to engage government on the need to reform English and maths qualifications, so they better reflect individuals' functional literacy and numeracy skills -. This will be particularly important for 16-18-year-olds, who are currently exempt from this change. We'll also share business feedback on the announcement through the government bulletin.
Linking social and economic value to national missions
What we delivered
Firms often face challenges meeting social value requirements in procurement due to unclear guidance, inconsistent criteria, and added costs - particularly SMEs with limited capacity. In response, the CBI called for clearer, more consistent criteria linking social value to government priorities.Following our consultation response and direct engagement with the Cabinet Office and the Minister, the updated National Procurement Policy Statement - published in February - now includes a priority to secure social and economic value aligned with national missions. It also sets expectations for contracting authorities to assess their capacity and skills to manage procurement effectively. These changes reflect CBI calls and represent a step forward in making procurement more accessible, transparent and mission focused.
What we'll do next
We'll continue working with the Cabinet Office and HM Treasury to secure the wider reforms outlined in the CBI's Spending Review submission.
Tackling regulatory barriers to growth
What we delivered
The CBI's Spending Review submission called on the government to commit to a targeted audit of regulatory costs in high-growth and/or enabling sectors within the Industrial Strategy. The governments recently announced audit, alongside the Prime Ministers commitment to cut regulatory administrative burden by 25%, will address some of the regulatory challenges faced by our members- including the growing volume of new regulations, complex compliance barriers, and increased regulatory divergence. These issues, highlighted by many businesses, have led to suboptimal outcomes, including stifled investment and growth.
This ask was included in the CBI's Spending Review submission.
What we'll do
We will continue to push for our additional Spending Review asks, including through a member roundtable discussion with the Chief Secretary to the Treasury (date TBC). Furthermore, The CBI will host its inaugural Business/Regulator Forum on 1st July to discuss regulatory reform and strengthen strategic dialogue between regulatory authorities and sponsoring government departments, ensuring the voice of business is effectively integrated into decision-making processes.
March
Reducing industrial action notice period
What we delivered
In line with CBI advocacy, the government has decided not to reduce the notice period for industrial action to seven days, as originally proposed. Instead, the notice period will be reduced from 14 to 10 days. Whilst still challenging, this is an improved outcome for businesses, as the CBI had argued that the original seven-day notice would create instability and undermine planning and operational efficiency.
The CBI has lobbied extensively on this issue, engaging with civil servants, ministers, and MPs through numerous meetings and consultations to ensure the voices of businesses were heard. Our advocacy highlighted the practical challenges businesses would face under a shorter notice period, particularly in sectors where timely decision-making and workforce planning are critical.
The 10-day notice period remains a compromise, but it represents a more manageable approach for businesses compared to the proposed seven-day limit.
What we'll do next
As the Employment Rights Bill progresses through Parliament, the CBI will continue to advocate for further changes that support a fair and flexible labour market. We will engage with key stakeholders to ensure that the final legislation reflects the needs of businesses, while still respecting workers' rights.
