The Confederation of British Industry (CBI) has warned the government against introducing new business tax rises in this week’s Autumn Budget.
The business group has urged the government to ‘end the repeated increase of business taxes that are stunting investment’; reform the business rates system; commit to maintaining ‘more generous capital allowances beyond 2023’; and require all regulators to prioritise investment, net zero and innovation as part of their core remits.
Tony Danker, Director General of the CBI, said: ‘There is a fundamental inconsistency where the government wants to unlock business investment, but its tax policies do the opposite. You cannot will the ends and ignore the means to turbocharge the economy. Every economist and business leader knows it.
‘This is the government’s first Spending Review since the pandemic hit and Brexit kicked in. It must choose: are we going for growth? Or going back to tax and spend?’
The Chancellor will deliver the 2021 Autumn Budget tomorrow.