Through targeted spending and tax measures to boost business investment, the CBI is confident that growth can be achieved and is suggesting that the Government use its underspend of £7.8bn, created last year, as well as a windfall of up to £4bn from the 4G spectrum auction that will take place next year.
The business group is suggesting that £1.5bn of this money be spent on short-term, high-impact measures, such as local government spending on road maintenance and scrapping stamp duty on AIM shared to encourage investment.
These suggestions are among the many the chancellor will be looking at as he prepares to present his Autumn Statement, which reports on the state of the economy and outlines changes to government economic policy.
The group warns against cutting pension tax relief next week, which the Chancellor is said to be considering, as it believes that lowering the threshold below £50,000 would hit too many middle-income earners.
The CBI is also keen for the establishment of the Government’s proposed £1bn business bank, which it thinks will help to ease the transition to a "new normal" of business lending from the lower lending levels that have characterised the years since the credit crunch began. News came yesterday that many small businesses are not even trying to borrow from banks anymore, as most of them get rejected.
Other business bodies, such as the Federation of Small Businesses and the manufacturers’ organisation EEF have also called for improved access to finance for small and medium-sized enterprises (SMEs) in the Statement.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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