What the CBI wants Jeremy Hunt to do in the crucial Spring Budget: Beckie Hart

Next month, the Chancellor Jeremy Hunt will present his Spring Budget. It’s a decisive moment for firms in Yorkshire and the Humber. It’s our chance to get the UK out of any recession sooner rather than later and boost growth – and we need to get this right.
By Beckie Hart
Published 14th Feb 2023, 11:45 BST

At the CBI, we recently published our budget submission, calling for Government action on investment, labour market activation, green growth and energy costs.

It’s undeniable that this has been a tough time for businesses across the UK – particularly when it comes to high energy bills and the squeeze in the labour market.

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And while the Government has succeeded in stabilising the economy since last year, we now need to double down on our growth ambitions rather than letting them slip away.

Chancellor Jeremy Hunt before speaking to the media at Victoria Place Shopping Centre, Woking, in response to the Bank of England Monetary Policy Report, in which they raised interest rates to 4% from 3.5%.Chancellor Jeremy Hunt before speaking to the media at Victoria Place Shopping Centre, Woking, in response to the Bank of England Monetary Policy Report, in which they raised interest rates to 4% from 3.5%.
Chancellor Jeremy Hunt before speaking to the media at Victoria Place Shopping Centre, Woking, in response to the Bank of England Monetary Policy Report, in which they raised interest rates to 4% from 3.5%.

And quite simply, there’s no time to lose.

Take labour shortages for example: a whopping 75 per cent of firms say they have been hit by labour shortages in the last 12 months.

That’s why we urgently need to help more people that have dropped out of the labour market get back into work.

Two of the biggest ways government could support firms in this aim are through the expansion of childcare provision and the widening of health support.

Beckie Hart has her say.Beckie Hart has her say.
Beckie Hart has her say.

And we can do more.

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We’re also calling on the Government to launch a two-year pilot transforming the Apprenticeship Levy into a “Skills Challenge Fund” to support individuals in re-skilling.

On energy costs, firms are already bracing themselves for next winter. While we welcome the recent Energy Bill Discount Scheme, we have to accelerate our progress on energy efficiency.

To help businesses reduce bills and emissions, the government can extend the Industrial Energy Transformation Fund (IETF) from 2025 to 2030 and launch ‘Help to Green’ vouchers.

Then there’s investment and the twin challenge firms face next April of corporation tax rising and the super-deduction ending.

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While this creates heightened pressure on firms, many of whom are already struggling, government can help to alleviate some of the strain. We know that a replacement to the Super-deduction would boost firms.

That’s why we’re calling for measures on investment incentives: either through full expensing for capital investment, or by setting out a roadmap towards this aim – starting at 50 per cent.

Finally, we have to make sure we’re not left behind our international competitors in the race to green growth.

Government can bolster firms’ ambitions here too – implementing an investment allowance under the Electricity Generator Levy is one such measure. So, let’s do it now.

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This is our chance to enhance energy security and gain momentum when it comes to developing cleaner, greener energy.

There’s no shortage of opportunities for growth out there.

At the Spring Budget, firms will be looking to government to provide support in those areas where they’re being held back and help them seize the prizes on offer.

Let’s use this moment to strengthen the UK’s prosperity prospects.

Beckie Hart is CBI regional director for Yorkshire & Humber

Related topics:Jeremy HuntGovernmentHumberYorkshire