Our reaction to Government plans for social care reform and funding

Lord Bilimoria, CBI President, said:

"There is genuine consensus in the country that social care reforms and greater investment are long overdue.

“Businesses accept difficult choices need to be made, but are already set to be hit by a substantial rise in corporation tax in 2023.

“After all that business has gone through during the pandemic and the fantastic Government support that followed, now is not the time for tax increases.  It’s time to stimulate investment and growth in the economy.

"National Insurance increase will directly hurt a business's ability to hire staff, at a time when businesses have faced a torrid 18 months and are now fighting crippling labour shortages.

"Government must be wary of heaping further pressure on businesses who will be central to the recovery, particularly by making it more expensive to recruit.

"This autumn will be a critical period if we are to drive a sustainable recovery. The Government must use all the levers it has in its power to encourage more businesses to invest in the months to come and do everything it can to encourage growth.

On the tax on share dividends, he said:

“This is out of the blue so investors, savers and businesses will need time to consider the full implications.

“Such investment plays a critical role in supporting businesses and enabling growth across the whole economy.”