CBI calls on Osborne to support investment in infrastructure
Business group wants chancellor to deliver on Autumn Statement proposals
By CFOWorld.co.uk | CFO UK | Published 00:05, 22 February 12
Chancellor George Osborne should use his Budget next month to support investment in UK infrastructure and change the tax system, the CBI said on Wednesday.
The business group urged Osborne to firm up proposals made in the Autumn Statement. These include a new capital allowance to attract investment into types of infrastructure which do not currently qualify; new forms of finance to help companies grow and take on staff; and ways to ensure environmental taxes help to encourage new growth.
CBI director-general John Cridland (pictured) said the government should maximise the incentive for businesses to invest in the UK. "While the state of the public finances is tight, the chancellor still has an opportunity in this Budget to make sure the UK tax system is as internationally competitive as it can be," he said.
The chancellor should stimulate infrastructure investment through new models of private finance, including investment by pension funds, the CBI said.
It also called on changes to the tax system, including a simplification of the controlled foreign companies draft legislation.
Ian McCafferty, CBI chief economic adviser, said the government must deliver on its corporation tax roadmap. "We should ensure our tax system encourages rather than stifles private sector investment through better use of capital allowances," he said.
"We also need to encourage innovation through our tax system, and design environmental taxes which promote sustainable, value-added growth," he added.
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