20 July 2016
Employment continues to grow, but underlying uncertainty remains.
Read the CBI/Pertemps Labour Market Update here.
15 February 2016
New CBI analysis reveals that inaction on business rates, together with recent Government policy changes, including the National Living Wage and the Apprenticeship Levy, will cost businesses around £9 billion every year by 2020-21 and around £29 billion over the course of this Parliament.
Businesses are committed to delivering jobs, investment, raising skills and living standards - and will work with the Government on implementing the Apprenticeship Levy and National Living Wage.
However, the UK’s leading business group cautions that the rising burden of policy costs has now crept up far enough, if the Government is serious about supporting the UK’s companies to drive growth in the economy.
In its Budget submission out today (Monday), the CBI urges the Chancellor not to increase this ‘cumulative burden’ on business further, and instead calls for a series of targeted steps to back UK-based businesses and support their growth ambitions.
Carolyn Fairbairn, CBI Director-General, said:
“A spate of recent Government policies, including the National Living Wage and the Apprenticeship Levy, will cost the economy around £9 billion a year by 2020. The UK needs to be able to grow its way out of the deficit, but the danger of this rising policy burden is that it holds back businesses, particularly smaller firms.
“This cost burden has now crept up far enough, if the Government is serious about supporting the UK’s companies to drive growth in the economy.
“In this Budget, businesses will want to see the Government updating the UK’s business rates system, supporting investment through the capital allowance system and equipping our world-class innovators with the tools they need to compete globally.”
Among the CBI’s recommendations are:
Commenting on the CBI's energy and pensions measures, Carolyn said:
“We now need to see clear and stable long-term price signals from the Government on energy. It’s vital that investors can unlock the capital they need to plan for construction projects that will last into the next decade, creating jobs and boosting UK manufacturers in their supply chains.
“An overwhelming number of our members have told us they are concerned by repeated changes to pensions taxation. The Government should stick with the current system, which ensures employers are able to do more than businesses in many countries in Europe.
“Any reduction in the role of the employer would only create greater fiscal pressure on the government in the long run.”
Listen to CBI Director of Economics, Rain Newton-Smith on the CBI's Budget submission.
The CBI's Budget proposals in more detail
The CBI is calling for action in five areas: making the UK tax and regulatory system more competitive; creating the environment and capabilities to innovate; providing certainty on energy policy; promoting skills and talent needed for growth and improving access to world markets.
To read our letter to the Chancellor in full, please click here.
1. Globally competitive tax and regulation
Companies want the Government to set out a competitive Business Tax Roadmap for this Parliament, building on the positive progress made through the 2010 Corporation Tax Roadmap.
CBI recommendations include:
2. The environment and capabilities for innovation
Innovation investment is critical to productivity and global competitiveness. Currently the UK is ranked lowest among the G8 for R&D spend. In the Budget, the Government should support smaller innovators by broadening access to the UK’s existing R&D incentives.
The CBI is calling on the Government to:
Rain Newton-Smith, CBI Director of Economics, said:
“Sustainable public finances are essential to long-term prosperity, but we won’t get the deficit down unless businesses are freed up to deliver the jobs and investment our economy needs.
“That’s why we’re calling on the Government to refrain from layering further costs on firms, and instead to take a number of steps to support investment and propel innovation.”
3. World-class enabling industries and infrastructure across the UK
Energy users, investors and producers want the Budget to set out a long-term plan that supports investment in a secure, affordable and diverse energy mix.
CBI recommendations for the Chancellor include:
Juergen Maier, Chief Executive, Siemens plc said:
“Policy certainty is crucial to deliver competitive, secure and sustainable energy in the UK. Clarity on the future of the Levy Control Framework well beyond 2020, for example, will help the energy industry bring down costs and maximise jobs and industrial opportunities in renewable energy. Similarly, and to ensure a balanced energy mix, we need action now to accelerate the transition away from coal to gas.”
4. Access to the skills, talent and capabilities needed for growth
The Budget is an opportunity to create a stable, business-led skills system that helps companies flourish, as well as the careers of apprentices.
The CBI wants the Government to:
5. Easy and open access to world markets
With net trade likely to remain a drag on the UK’s economic outlook, doing what we can to boost our export performance is paramount. It is down to individual businesses to step up to the exports challenge, but to support them the Government must offer consistent and clear advice for firms with international ambitions.
The CBI recommends that the Government:
14 July 2016
Our regular roundup of the key economic indicators
14 July 2016
Carolyn and Josh focus on post-referendum priorities during their Westminster rounds