CBI has called on the chancellor George Osborne to use his March 21 Budget to score the growth and investment policy goals he put forward in his Autumn Statement and give the UK economy and jobs a “real boost”.
In its submission to the 2012 budget, the CBI also called for changes to the UK tax system, which it believes could help persuade businesses to invest in the UK and further stimulate growth.
The CBI is urging government to deliver on its proposals in the Autumn Statement to attract more investment into the UK infrastructure, boost investment for mid-sized businesses and enable more credit flowing into companies.
The CBI’s latest tax proposals include: 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 to encourage new growth.
John Cridland, CBI director general said: “We’re calling on the government to make some targeted changes to the UK tax system, which could make an impact on business decisions and create new opportunities for growth. 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. We also want to maximise the incentive for businesses to invest in Britain.”
Ian McCafferty, CBI chief economic advisor, added: “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 growth.”