A Treasury source said investment allowances “would be covered in the spring Budget”, with the Autumn Statement focused on filling a £60bn hole in the public finances and bringing down inflation with tax rises and spending cuts.
However, Mr Sunak’s decision to delay wider reforms risks sparking concern from business groups, as UK companies invest just 10 per cent of gross domestic product each year, lagging behind the 14 per cent seen in competitor countries., with the economy shrinking by 0.6 per cent between July and September.
Warning against a full-blown return to austerity, CBI lead economist Alpesh Paleja said: “The Autumn Statement must learn the lessons of the 2010s: fiscal sustainability and lifting trend growth are both immediate priorities.” Its director general, Shevaun Haviland, said: “Businesses can’t afford to see the Government make any knee-jerk decisions that damage long-term growth.