The CBI has today called on the Chancellor to focus his March Budget on areas that do most to boost economic growth and job creation.
In a letter to George Osborne, the CBI outlines what it sees as the priorities for the Government’s Growth Review. It is calling on the Government to focus on three critical areas: boosting export performance, unleashing domestic investment spending, and removing barriers for high-growth firms.
The CBI’s proposals include creating a new corporate bond market for mid-caps to increase the supply of capital; speeding up the planning system to stimulate infrastructure investment; and encouraging companies to become more energy efficient by restoring the incentive element of the Carbon Reduction Commitment.
It also says the Budget must address areas of taxation, “which are discouraging entrepreneurship and undermining UK competiveness”, including the 50p personal tax rate and the narrow definition of business assets under Capital Gains Tax.
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John Cridland, CBI Director-General, said:
“This Budget must demonstrate a relentless focus on growth to help get the UK working again. We need an all-action Budget which boosts exports, investment and jobs.
“The Budget should create the framework for a Mittelstand of mid-cap businesses by ensuring they can access the capital they need to expand at home and abroad.
The CBI is also calling for changes to regulations. These include restoring the two year unfair dismissal qualifying period to give companies more time to assess the potential of a new employee – it says this will give firms the confidence to hire new staff without the threat of a tribunal if it doesn’t work out. In addition, it calls for the Tribunals System to be strengthened to “weed out weak and vexatious claims”.
