28 Oct 2016
In its Autumn Statement submission, the Confederation of British Industry (CBI) has urged Chancellor Philip Hammond to consider a range of measures to help boost the UK economy following the vote to leave the EU.
The CBI has called for the Government to ‘lay foundations allowing firms to navigate a more uncertain economic outlook’ and to invest for the future.
The business group also requested an increase in average public sector net investment spending this Parliament to 2% of Gross Domestic Product (GDP). This would raise average annual public investment by £6 billion.
Echoing the call made by the British Chambers of Commerce (BCC) in its own Autumn Statement submission, the CBI also urged the Chancellor to increase the Annual Investment Allowance (AIA).
The group proposes raising the allowance to £1 million until the end of 2018 to ‘increase the attractiveness of near-term investment’.
Other proposals put forward by the CBI within its submission include the ‘fast delivery’ of planned infrastructure investments and for the Government to use business rates to incentivise productive investment.
Carolyn Fairbairn, Director General of the CBI, commented: ‘The Chancellor should capitalise on the UK’s core strengths, setting out a pro-enterprise agenda that instils confidence and kick starts investment.
‘With huge variations in productivity between different parts of the country, the top priority must be to set out a programme that will get our regions firing on all cylinders and supports businesses to innovate, invest and create jobs in the years ahead.
‘Amid economic uncertainty, it’s important that the Government does what it can to incentivise businesses to invest today, rather than postpone until tomorrow.’