The CBI reiterated its call for the Chancellor to use his Budget to focus on boosting investment and exports to help build on the recovery and rebalance the economy. The leading business organisation is also arguing for a freeze to the Carbon Price Floor from 2015/16, and more support for energy-intensive firms to help them compete internationally in the face of higher costs.
In its budget submission, the CBI warned the Chancellor that despite robust growth expected this year and next, he must keep his focus on prioritising measures to raise business investment and trade.
The CBI’s proposals for the Budget include:
- Introducing an energy package which encourages investment in generation and helps businesses and households struggling with high energy costs
- Extending the Annual Investment Allowance beyond 2015
- Incentivising longer-term equity investment through tax relief for retail investors
- Introducing a capital allowance for structures and buildings
- Freezing Air Passenger Duty.
John Cridland, CBI Director-General, said: “We’re on the cusp of an exciting recovery but we can’t assume that rebalancing of our economy is a given.
“We need the Chancellor to use his budget to support business investment and encourage firms to get on planes to sell their wares around the globe by getting behind our exporters. This Budget really is make or break.
“Extending the Annual Investment Allowance will encourage businesses to invest in plant and machinery, while boosting equity finance will help smaller firms grow.
“One of the biggest challenges facing businesses are rising energy costs. We desperately need investment in energy, and British businesses are operating with one arm tied behind their backs. That’s why we are calling for a freeze on the Carbon Floor Price to help them compete globally.”