Rain Newton-Smith, CBI Chief Executive, said:
“The government's growth mission is currently stalled. While the
Chancellor has succeeded in creating the fiscal headroom she
needed, a scattergun approach to tax risks leaving the economy
stuck in neutral.
“Adding national insurance to salary sacrifice pension
contributions curtails savings and pushes up the cost of
employment. Coming on top of the rise to the National Living
Wage, increased employment costs make it even more expensive for
employers to offer jobs to young people and jobseekers.
“The government should be commended for protecting capital
spending, boosting innovation, sticking with the corporate tax
roadmap, and hiring the planning officers business asked for. But
business will still rue a missed opportunity to be bold and press
on with much needed tax reform, simplification and alignment of
incentives to catalyse business investment and job creation.
“With business investment and profitability weaker as a result of
these decisions, the government must now double-down on
leveraging the experience and expertise of enterprise to find the
step-change in economic growth that has proven elusive. One of
the biggest things the government can do right now is get round
the table with business to find a landing zone on the Employment
Rights Bill that works for everyone.”
