The Confederation of British Industry (CBI) has called on the Chancellor to spend £2 billion in the Budget so that businesses will see their investment boosted, skills raised and business rates eased.
It has been covered in the CBI’s Autumn Budget submission which should help to set the tone for the post-Brexit economy.
Given its position in representing almost 200,000 businesses, the CBI is well placed in understanding the needs of organisations, especially given the complexities surrounding Brexit and the prospect of no-deal.
Set for 29th October – exactly five months before Brexit – this Budget is one of the most significant in recent history.
And in its Autumn Budget submission, the CBI has put together a package of proposals that will cost approximately £1.5 billion in 2019/20, and £2 billion in 2020/21.
It accounts for 0.2% of official forecasts for government spending, according to the CBI.
In particular, the Director-General of the Confederation, Carolyn Fairbairn, wants the Chancellor to focus on three areas that will eventually unlock growth: reformation of business rates so firms are able to invest and grow; make the apprenticeship levy work; improve capital allowances to drive investment in the digital and low carbon technologies.
With the official date of Brexit set for 29 March 2019, the CBI say that the Budget must tackle the immediate impact of the uncertainty caused.
As such, the Autumn Budget Submission has demanded an increase in the Annual Investment Allowance to £500,000 for two years, which should help to alleviate uncertainty and encourage investment.
Ms Fairbairn believes this Budget is “pivotal” for UK business.
She said: “This Budget is a pivotal moment and chance to showcase the UK as an open, collaborative and confident nation.
“Entrepreneurs here and around the world need to see a UK committed to harnessing the power of business to innovate and tackle problems, from sustainability to inequality.
“With skills shortages, uncertainty and the squeeze in incomes on the rise, this couldn’t be a more critical time to plug the drain on the UK’s productivity and deliver prosperity that is shared by workforces and communities across the country.
“The government must focus its attention on making the UK a shining beacon of enterprise, at the top of every investment league table and known worldwide as a country that attracts, not deters, capital and talent.”