Partner Article

CBI calls for March Budget to lead growth

The CBI has called for the Government to use the March budget to deliver on its proposals put forward in the Autumn Statement.

It wants a £500m package of tax cuts including a new capital allowance to attract investment into types of infrastructure which do not currently qualify; new forms of finance to help companies grow and take on staff, and ways to ensure environmental taxes help encourage new growth.

John Cridland, the CBI director-general, said: “The Chancellor must use this Budget to score the growth and investment policy goals he put forward in his Autumn Statement.

“Delivering private sector investment in infrastructure, supporting mid-sized businesses, hammering out the details on credit easing, extending the Youth Contract to 16 and 17-year-olds, and introducing the New Build Indemnity Scheme for mortgages at the earliest opportunity will all provide a real boost for UK growth and jobs.

“With our economy firmly under the international spotlight, there is no time to lose: Plan A plus must become a reality.”

Elsewhere in the proposals, the CBI has suggested providing non-bank finance to mid-sized businesses through a corporate bond market.

It would also like to see the Government deliver on proposals for credit easing and the New-Build Indemnity Scheme, which will make mortgages more affordable and unfreeze the housing market.

Commenting on the CBI’s proposals, Ian McCafferty, CBI Chief Economic Adviser, said: “Companies that lack certainty on how they will be taxed in the future are reluctant to invest, so Government must deliver on its corporation tax roadmap without delay.

“We must make sure that we continue to attract and keep successful multi-national businesses in the UK.

“We should ensure our tax system encourages rather than stifles private sector investment through better use of capital allowances.

“We also need to encourage innovation through our tax system, and design environmental taxes which promote sustainable, value-added growth.

“Our new proposals are designed to help Government realise its ambition for the UK to have the most competitive tax regime in the G20.”

This was posted in Bdaily's Members' News section by Tom Keighley .