CBI Wales responds to the Welsh Government Draft Budget 2023/24

CBI Wales have praised today’s Welsh Government’s 2023/24 Draft Budget as one of stability and growth by freezing business rates and keeping taxes at the same level.

Director Ian Price said the government had responded to CBI Wales's call for a freeze in business rates from April 2023, that will bring the country in line with England after a similar measure announced by the Chancellor in the Autumn Statement.

CBI Wales understands the fiscal constraints faced by the devolved government in 2023/24, but Mr Price said more capital investment was needed to build growth and create jobs across the country.

Mr Price also called for more support for energy intensive industries in Wales to help them cope with high energy costs.

Commenting on the Senedd announcement of the Draft Budget, Ian Price said:

“The 2023/24 Draft Budget points the Welsh economy in the right direction for stability and growth, two of the key things our members asked the government to achieve.”

On business rates

Ian Price said:

“Businesses faced an inflation-based hike in business rates bills of around 10% from April and we are delighted the Welsh Government listened to our calls to protect businesses and matched the UK’s announcement of a freeze in the next tax year and extended targeted support for a further year. That is the kind of support and stability firms need.”

On apprenticeships

Ian Price said:

“Firms will be pleased the Draft Budget continues to support apprenticeships with £140m allocated for the next financial year as well as £35m for resource efficiency will support firms become more sustainable.”

Mr Price said the Draft Budget’s confirmation of no income tax rate increases in 2023/24 ‘provides the certainty firms have been asking for.’

On capital investment

Ian Price said:

“While we appreciate the challenges in setting the Draft Budget this year, the Welsh economy would be strengthened by a final Budget that prioritises capital investment that creates growth and jobs.”

On energy support

Ian Price said:

“The CBI has called for a successor to the UK Government’s Energy Bill Relief Scheme, which ends in April. We need further support from the devolved government for the handful of energy intensive industries that are key players in a range of critical sectors to the UK economy.”