CBI reveals Budget wish list

MORE efforts to boost international trade and encourage businesses to invest feature high on the CBI’s wish list for this month’s Budget. 

The business group says that although the economy is growing there is still a need to rebalance away from consumption to secure a sustainable recovery.  

The organisation’s proposals for the Budget, which will be delivered on March 19, also includes: measures to help business hit by high energy costs, freezing the unpopular Air Passenger Duty; tax relief for equity investors and introducing a capital allowance for structures and buildings. 

John Cridland, CBI director-general, 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.” 

On the question of energy costs – a big issue for manufacturers and the chemicals sector in particular – the CBI wants the Government to freeze the Carbon Price Floor (CPF) from 2015/16; extend the Energy-Intensive Industry Compensation Package (EII) and exempt Combined Heat and Power (CHP) from CPF. 

Mr Cridland said: “It’s vital that we have a robust carbon price across Europe if we are to obtain the investment in energy infrastructure that the UK needs. At the same time, we need to recognise that British businesses, especially energy-intensive industries, are struggling with high energy costs so we want to freeze the Carbon Price Floor to help firms compete internationally, as well as ease pressure on household bills.” 

Other Budget wish-list requests include:

:: Extending the Annual Investment Allowance at £250,000 beyond its current deadline of January 2015 – this would boost capital spending in plant and machinery which is below the EU average;

:: Introducing a capital allowance for structures and buildings to encourage investment in critical areas like energy infrastructure;

:: Making the successful Seed Enterprise Investment Scheme (SEIS) for small companies permanent.