CBI responds to Spring Budget 2024

Rain Newton-Smith, CBI Chief Executive, said:

“Businesses recognise that the Chancellor had to perform a tricky ‘high wire balancing act’ of giving momentum to the economy without sacrificing hard-earned progress on bringing down inflation.

“Doing that successfully meant focusing on the horizon ahead – and the Chancellor is right to keep his gaze fixed on the structural challenges facing the UK economy.

“Having delivered a sizeable down payment to business confidence in last year’s Autumn Statement, firms were looking for a budget that prioritised delivery while signalling a sustainable plan for growing the economy.

“Giving providers greater long-term certainty will help ensure a successful rollout of crucial childcare reforms and delivers on a key priority for businesses across the country.

“The reduction in high marginal tax rates for working parents, alongside cutting National Insurance Contributions, offers a broad set of measures that will incentivise work at a time when access to labour represents a major obstacle to business growth.

“Draft legislation that extends full capital expensing to leased and rented assets can offer greater momentum to efforts to increase business investment and builds on the CBI’s headline recommendation delivered in the Autumn Statement.

“The UK’s ability to boast a range of innovative high growth sectors is rightly the envy of the world and targeted support for them will help the UK to compete on the world stage.

“However, the extension of the energy profits levy weakens the competitiveness of the sector. Business will be looking for more emphasis on delivery by developing a Net Zero Investment Plan to crowd in the private finance needed to deliver the clean energy transition.”