Budget: CBI urges Chancellor to prioritise business investment

Posted on 3 Mar 2014 by Callum Bentley

The head of industry body CBI has today issued a letter to George Osbourne urging the Chancellor to prioritise measures to boost business investment and trade in the UK budget announced later this month.

The letter submitted by CBI director general John Cridland also outlines suggested measures regarding energy, support for SMEs and housing.

Read the full letter here.

The business group expects robust growth this year and next but warned of the need to rebalance away from consumption to secure a sustainable recovery.

The CBI’s proposals for the Budget include:

  • Introducing an energy package which encourages investment in generation and helps businesses struggling with high energy costs
  • Extending the Annual Investment Allowance for smaller firms 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.

CBI director general John Cridland, said: “The economic recovery is taking hold with businesses and consumers both feeling more confident but we must make sure that it really takes root and this can only be done through rebalancing.

“There are encouraging signs that business investment and net trade are on the up and now is the perfect time for the Government to get full square behind it, particularly in the case of smaller firms.

“Above all, British businesses must have secure and affordable energy that enables them to compete internationally and keep jobs in the UK.