International Finance: What UK businesses want in Hunt’s budget: investment, tax cuts, skills

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The UK business community is urging Chancellor of the Exchequer Jeremy Hunt to incentivise investment, cut taxes and tackle skills shortages in his budget next month, after the British economy narrowly avoided a recession last year.

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“Everywhere they turn, businesses see barriers to investment and expansion,” said Shevaun Haviland, director-general of the British Chambers of Commerce. She cited issues such as poor provision of childcare contributing to labour inactivity, high energy costs, excessive business taxes and a lack of green funding. “We urgently need to see coherent policies from the government that set the economy on a path to growth.

“Investment incentives are being pulled away just at the time we need them most,” said CBI director-general Tony Danker, pointing also to a scheduled increase in corporation tax to 25% from 19% from April. “It will have a huge impact on investment and leave the UK falling behind its global competitors.”in the UK, an issue that has exacerbated skills shortages, holding back growth.

MakeUK, which represents UK manufacturing, said Hunt should review restrictions on immigration to fill critical labour gaps. The IoD said Hunt should give tax credits to firms that invest in training staff in areas of national need.The FSB wants Hunt to ease the tax burden on small firms by lifting thresholds for business rates.

 

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