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A new report from the CBI suggests that there is an increase in business confidence at the start of the new year, which should see a surge in investment across the UK, particularly in the private sector. This surge will see a lift in productivity and economic growth and is the key to building the UK as a global economic leader.
The CBI has set out key proposals for the Budget to successfully create a pro-enterprise economic policy:
1. The UK’s business rates system puts many parts of the UK economy at a competitive disadvantage. A comprehensive review should reduce the bill on individual businesses. That review should be completed by year end to incentivise investment by firms across the UK.
2 .The Apprenticeship Levy is holding back skills investment and adding costs and complexity to businesses at a critical time for our economy and the workforce. An extensive review of the levy to ensure it can support a wider range of training should be launched and completed by the next Budget later in 2020.
3. The government’s National Infrastructure Strategy is welcome and should as a first step commit to delivering HS2 in full to unlock capacity and transport connections across the North. It should allocate funds to a wide range of strategic infrastructure projects set out in the CBI’s full submission, including the Midlands Engine Rail, East Coast mainline and Crossrail and channel digital infrastructure funding to hard to reach places.
4. Innovation investment drives good jobs and global strength but is currently concentrated in the South. The UK should establish a network of world-class Catapult Quarters in every region of the UK to build on local strengths, develop low carbon zones and support innovation clusters.
5. Existing ideas for new US-style Advanced Research Project Agency (ARPA) should be accelerated to create a longer term, high risk approach to investment.
6. The R&D tax credit should be increased to 13% from April this year to spur private investment and launch a consultation into widening its scope.
7. Vital steps on the UK’s path to Net Zero should be announced, in particular using regulation to ensure that all commercial properties are at least EPC level B by 2030, further develop testbeds for hydrogen deployment which could transform low carbon usage, and fast-track the doubling of funding for on-street charging points to ensure coverage for electric vehicles across UK by 2024.
Read the full article and comments from Dame Carolyn Fairbairn, director-general of the CBI here: https://dealersupport.co.uk/historic-budget-brings-chance-for-uk-wide-surge-in-investment-says-cbi/
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