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Summer Budget must provide stability and certainty, says CBI

Posted by Wellden User

The chancellor should use the Summer Budget on Wednesday 8th July to ensure that businesses of all sizes have the stability they need to drive growth, the Confederation of British Industry (CBI) has said.

The director general of the CBI, John Cridland, used a meeting with the chancellor to put forward a number of potential measures for inclusion in the Budget. The proposed measures are focused on boosting investing, sealing in deficit progress and creating jobs.

The CBI is calling for:

  • a plan to boost productivity through increasing firms access to long-term capital
  • the introduction of a business tax roadmap to provide clarity on the range of current business taxes
  • details on the fiscal rules regarding future deficit reduction
  • an increase in the Annual Investment Allowance to £250,000 from 2016.

John Cridland said:

“Firms of all sizes, especially ambitious, disruptive and growing ones, need to see the government build on welcome steps in the last Parliament to support investment.

“It should now act now to promote stability and certainty in tax policy through a commitment to introduce a roadmap which covers all business taxes.”

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Business rates review must create ‘fair’ system, says CB

Posted by Wellden User

The government’s ongoing business rate review must aim to create a ‘simple, fair and competitive system’, the Confederation of British Industry (CBI) has said.

The business organisation argued that the current system limits investment and impedes competition. It said a new system should be refocused onto promoting investment-led growth.

The CBI is calling for:

  • More frequent property valuations
    This will create a fairer system capable of reacting quickly to the changing economic environment. The CBI suggests introducing a 3-year evaluation period.
  • Raising rates in line with the consumer price index (CPI) instead of the retail price index
    This will ensure that business rates do not rise faster than the official CPI inflation rate. According to the CBI, the change would save ratepayers £1.5bn.
  • Exempting properties with a rateable value under £12,000 from paying business rates
    This will remove the cost of business rates for many small businesses. The CBI also argues that this would also enable efficiency savings which could be reinvested into improving the system.

Katja Hall, deputy director general of the CBI, said:

“The current business rates system harms businesses by relying on a decades-old model that no longer reflects economic conditions. That’s made life tough for retailers in particular.

“These reforms are long overdue so it’s good that the government is following through on its commitment to look closely at how it can help alleviate the most onerous aspects of business rates.”

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