What we’re pushing the government on and why.
The election of a new government is always a moment of change for the economy. Yet we believe that this moment, even more than previous elections, can be truly decisive to move the economy from the short-term shock absorption of recent years to the long-term, sustainable growth that businesses, communities and people across the UK need. Partnership between government and business will be vital for this.
We sent our submission to the Treasury in September, ahead of the Autumn Budget taking place at the end of the month. The submission pushes the new government to set out a positive vision and framework for long-term growth and establish robust mechanisms to involve business in its delivery.
Our submission in brief
The business community welcomes the momentum brought by the new government in the first few months since the election, the early steps taken towards mission-led growth and the work to bring industry into the design of these policies.
We recognise the difficulty of the UK’s present economic and fiscal situation, but we believe in the importance of hope, vision and laying out a path to prosperity to take us through the difficult decisions needed in this Budget. Confidence is central to investment decisions and above all, we must focus on retaining competitiveness and certainty at the heart of economic policy.
In our Mission-Led Programme for Government, we set out a structured approach to achieve that goal, with a series of practical and innovative policy solutions for the first 100 days of the new Government. Our Autumn Budget submission builds on that work, using the insights and ideas of our members across sectors, regions and nations to lay out business’s top priorities in the coming Budget. Our fully-costed, cross-economy and evidenced submission ensures that was matters to our members is heard by government.
Summary of our top Budget recommendations
Optimising the cross-cutting enablers of growth
Sustainable growth is not possible without optimising crucial enablers across the economy to attract investment – such as infrastructure, taxation, planning and capital markets.
Launching a comprehensive reform of the business rates system
By announcing a consultation to move to a progressive slice-based system of taxation, providing a bridging solution to the end of temporary reliefs for sectors most affected and freezing the multiplier until the next revaluation period.
Reforming the planning system
Starting with building capacity by ringfencing planning fees and allowing applicants to pay for independent consultants employed by the Local Planning Authority (LPA).
Increasing access to capital through pensions reform
By returning Defined Benefit (DB) schemes surpluses to businesses and delivering on Mansion House reforms, considering the implications for a variety of asset classes, from listed to unlisted equities, as well as infrastructure.
Boosting productivity and business investment
Businesses can only invest if they have the support of a reliable workforce, equipped with the right skills. And to keep growing, they need to be quick to adopt technology to drive the productivity that will keep them competitive and resilient.
Reforming the Apprenticeship Levy
By introducing immediate flexibility to use the funds for a broader range of accredited courses, more transparency as to how the funds are allocated, and ensuring that 16–19-year-olds have equal access to apprenticeships by funding them from the education budget.
Helping employers support the health of their workforce
By delivering on the outcome of the occupational health tax incentives consultation with an ambitious expansion of non-taxable health support.
Accelerate technology adoption
By expanding the Made Smarter programme to all regions and sectors of the economy, as part of a National Strategy on Technology Adoption.
Building confidence in the transition to net zero
Decisive action is needed if the UK is to reach its goal of net zero emissions by 2050. Businesses stand ready to act, but they need the policy certainty and strategic direction to know they are focusing their efforts where they will have the most impact.
Linking the UK and EU carbon pricing systems
Doing so would stabilise the carbon price and provide more liquidity, improving the attractiveness of the market and its effectiveness in accelerating decarbonisation. Critically, such linkage would negate the need for carbon borders between the UK and EU, thereby preventing carbon leakage and alleviating significant implementation challenges likely to arise.
Using tax incentives to promote high-growth green technologies
By introducing a new Green Innovation Credit with a 40% headline rate to unlock R&D, a 10% Corporation Tax rate for green profits to accelerate commercialisation, and a green super-deduction capital allowance rate of at least 120% to boost capital investment.
Establishing a Net Zero Investment Plan
Outlining the investment requirements for sectors to decarbonise, targets and the delivery plan to scale-up the deployment of net zero technologies, as well as providing consistent tax and regulatory responses to market barriers inhibiting project delivery.
