“This was a rock-solid budget, bringing more treats than tricks for business.”
Carolyn Fairbairn – 29 October 2018
Key successes the CBI achieved for business:
- Annual Investment Allowance (AIA) -The CBI called for an increase in the Annual Investment Allowance (AIA) to kickstart business investment and members will have been delighted to see the Chancellor announce that increase from £200,000 to £1m.
- Apprenticeship Levy Reform - The CBI ‘scored’ 3 out of 3 on its Apprenticeship Levy asks when the Chancellor announced that SME contributions to apprenticeship training would be halved. He had previously announced the increase to the transfer cap and additional funding for the Institute for Apprenticeships– all key CBI policy asks in the Autumn Budget submission.
- Structural building allowance - The CBI’s Catching the Peloton report outlined the need for the government to explore how the incentive regime can support investment in commercial buildings so members will be delighted that the Chancellor announced a new relief for this.
- A delay to the introduction of changes to employment taxation - The CBI has long called for a delay to the introduction of IR35 to the private sector and members will be pleased to see that introduction delayed until 2020 with a consultation on the detail allowing more time for businesses to prepare.
- Short Term Business Visitors (STBV) - The CBI called for the PAYE special arrangement work day rule to be increased from 30 days to 60 days, and for the PAYE reporting and payment deadlines to be changed. Members will be pleased to see the Chancellor adopt both of these CBI policies.
- Additional Funding for Knowledge Transfers Partnerships - In Ostrich to Magpie, the CBI explicitly called for additional funding for KTPs, so members will be delighted to see more detail on steps to help business improve their own productivity.
- Continued support for Entrepreneurs relief - Business will welcome the Chancellor’s support for the Entrepreneurs Relief – a CBI ask from its Autumn Budget submission – sending a clear signal that the UK supports and encourages entrepreneurship.
- £30BN for Road Investment - The CBI’s Unlocking Regional Growth report and Driving Delivery report highlighted the importance of investing in regional infrastructure and investing so significantly in our roads could help ease the all too real delays that people face just getting to work and firms transporting goods to final destinations, let alone travel for any other reason.
- Pilot for innovative delivery of digital infrastructure - The CBI called on the Government to improve access to fast and reliable digital infrastructure across the UK, so the announcement of £200m to pilot innovative delivery of full fibre digital infrastructure in rural areas is a fundamental step in achieving nationwide full fibre by 2033.
- Boost to R&D funding & extension of the NPIF - The CBI has repeatedly called on the Government to boost R&D investment, and business will be pleased with the additional funding announcements, which includes the ISCF, and expanding digital Catapult centres around the UK. Additionally, the CBI has long called for support of the NPIF, and members will be delighted with the extension by an extra year to 2023-24.
But there is still more the Government can do. The CBI is engaging with the Government to make sure that Budget measures announced are developed in a way to increase business investment across the UK.
- We will push the Government to ensure the newly announced Digital Services Taxation is tightly targeted to specific business models, so it does not have wider unintended ramifications on the wider business community, economy and UK competitiveness. Additionally, we will continue to push the Government to work with our international partners at the OECD level to develop a multi-lateral solution.
- We will continue to work with Government to set out a Business Rates regime that works for all businesses, and that encourages rather than deters investment.
- We will continue to urge the Government to set out a vision for energy efficiency and future of carbon pricing.
- We will work with Government to ensure the consultation on plastics recognises the limitations some products have for alternatives to plastics.