CBI responds to the Conservative manifesto

Rain Newton-Smith, CEO, CBI, said:

"The UK economy has spent the last five years buffeted by an unprecedented series of external headwinds that has required a focus on short-term absorption. With signs that the economy is beginning to pick up steam, now is the moment to focus on long-term, sustainable growth.

"Achieving that ambition requires a credible plan for getting to grips with the long-term structural challenges in our economy. Measures to boost R&D investment, speed up the planning system, and support people into the workplace represent critical enablers.

"But no government can solve the challenges facing the economy alone, so harnessing the insights and innovation of business will be key to delivering lasting change. One example is the absence of a Net Zero Investment Plan which represents a missed opportunity to secure the UK's standing as world-leader on green growth, fostering investment opportunities so firms want to invest and grow in the UK.

"There is real value in giving businesses greater certainty on key business taxes, like corporation tax and VAT. But other key taxes like business rates need wholesale reform - not just a shift in burdens from one sector to another.

"Moves to reduce tax on workers and increase the number of apprenticeships are in isolation welcome - but both are areas where a more holistic approach could unlock the business investment needed to deliver the shared goal of a high productivity, high growth economy. "