Friday, August 14, 2020

UK needs a budget to grow us out of austerity, CBI tells Chancellor

The UK needs a Budget that will enable the country to grow its way out of austerity, the CBI has told the Chancellor of the Exchequer.

Faced with generation-defining challenges, this Budget should send signals that the UK is open for business and committed to supporting entrepreneurs and ambitious firms to thrive in all parts of the UK.

The CBI says the Government’s Budget is an opportunity to back the basics of a strong market economy and show how good government in partnership with responsible business can improve lives, regardless of the outcome of the Brexit talks.

In its pre-Budget letter to the Chancellor, the CBI sets out a series of measures aimed at bringing the UK’s new Industrial Strategy to life through concrete action, as a means of reinforcing the UK economy against future challenges.

Carolyn Fairbairn, the CBI’s Director-General, urges the Government to get on with doing what it has promised – greenlighting large and small infrastructure projects, implementing the ground-breaking T-Levels programme and providing practical support for innovators.

Against the backdrop of subdued investment, business leaders need a stable, pro-enterprise environment. Top priorities are: improving education, fuelling inward investment in energy and infrastructure, spurring innovation and promoting competitiveness through the tax system. New measures should build on what has been started.

Carolyn Fairbairn, CBI Director-General, said: “Brexit planning must not be allowed to crowd out vital action at home. With this Budget, the Government needs to set its eyes on the horizon, not the next few yards. The only sure way to raise living standards and provide sustainable public services is to solve the UK’s productivity problem. This means tackling the weak foundations of our economy with consistency and determination.”

Business priorities in the CBI’s Budget submission include:

  • Communicate a clear plan on the Government’s Industrial Strategy with a timetable for the consultations promised in the Industrial Strategy green paper
  • Protect per pupil funding in real terms for this parliament and replenish schools’ capital budgets to support investment in long-term growth
  • Commit to fast delivery of planned infrastructure projects within the current road and rail investment pipelines, with clear timeframes and implementation plans including investment in ultra-fast digital networks
  • Ensure business rates incentivise productive investment – especially from our manufacturers – by exempting new plant and machinery investments from rates bills and bringing forward the RPI to CPI switch
  • Set out a pathway to reach an investment target of 2.4% of GDP on R&D by 2027 and increase Innovate UK’s funding for collaborative R&D.

The CBI is also asking the Chancellor to provide government departments with resources to make a success of Brexit, and set out a vision for tax policy that enhances the attractiveness of the UK as a place to do business.

Introducing the CBI’s Budget submission Carolyn said: “The UK is facing the most complex challenge of the post-war period in leaving the EU, particularly at a time when the UK economy has gone from the fastest growing in the G7 to the slowest. The UK needs a Budget that will enable the UK to grow its way out of austerity.

“Faltering consumer and business confidence risks lowering living standards, so it’s important the Government sends firms the right signals they need to continue investing and growing.

“Ministers need to build on the basics to get our economy in shape for the challenges ahead by committing to a pro-enterprise environment and maintaining a relentless focus on the drivers of productivity.

“It’s critical the Budget ensures growth reaches all parts of the UK. A bold Industrial Strategy, with a clear delivery timetable and measurable progress is needed to eradicate differences in living standards around the UK.

“Amid heightened economic uncertainty, the focus must be on incentives to invest today, not postpone until tomorrow. To unlock investment in the UK’s factories and high streets, business rates should be aligned quicker with CPI not RPI and equipment investment excluded.

“Ultimately, building a more prosperous and fairer society requires a relentless commitment to pursuing productivity improvements.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Investor acquires £41m BTR scheme in Leeds

Habitus Leeds has sold a £41 million Build to Rent (BTR) Scheme just outside the city centre to has to clients of Aberdeen Standard...

Forgemasters manufacturing key components for renewables project

Sheffield Forgemasters is manufacturing key components for a revolutionary new device for the renewable energy sector. In a first for the company, it will supply...

Rebrand for Leeds-based renewable energy pioneers

Planet-U Energy, the Leeds-based renewable energy brokerage, has announced a full creative rebrand following two years of growth from just 1 to 50, and...

Construction readies for speculative Sheffield development aimed at SMEs

A new speculative development of industrial units designed for SMEs will start at Magna 34 Business Park this month. NSM manages the development on behalf...

City solicitors raise £6,400 for Sheffield children’s charity

Almost £6,400 has been raised for Create a Dream Foundation (CADF), the Sheffield-based children’s charity, by city solicitors Wake Smith. Set up in 2017, the...

Private investor swoops for Ossett site in £2m deal

A private investor has snapped up a prominent industrial site in Ossett for more than £2 million. Olway Works on Healey Road was marketed by...

Related news

Investor acquires £41m BTR scheme in Leeds

Habitus Leeds has sold a £41 million Build to Rent (BTR) Scheme just outside the city centre to has to clients of Aberdeen Standard...

Forgemasters manufacturing key components for renewables project

Sheffield Forgemasters is manufacturing key components for a revolutionary new device for the renewable energy sector. In a first for the company, it will supply...

Rebrand for Leeds-based renewable energy pioneers

Planet-U Energy, the Leeds-based renewable energy brokerage, has announced a full creative rebrand following two years of growth from just 1 to 50, and...

Construction readies for speculative Sheffield development aimed at SMEs

A new speculative development of industrial units designed for SMEs will start at Magna 34 Business Park this month. NSM manages the development on behalf...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close