The Confederation of British Industry (CBI) is leading calls for the chancellor to announce ways of putting the private sector at the heart of the UK’s growth.
The employers’ organisation points out that constrained government and household spending means this year’s economic growth will have to be driven by the corporate sector and asks chancellor George Osborne to find ways of bolstering business confidence.
In its letter to the chancellor, the CBI says: “The UK tax system has a significant impact on the attractiveness of business investment decisions, playing an important role in determining whether projects proceed.
“Improving the tax environment is therefore critical to increasing the appetite for private sector investment in the UK.” (article continues below)
The group recommends greater simplification of the corporate tax system, a commitment to maintaining the effective value of the research and development tax credit and improvements to the tax policy-making process.