The CBI has demanded that the UK Government reform the outdated property tax regime and improve cooperation tax relief.
According to the CBI’s analysis of policy changes, the introduction of an Apprenticeship Levy and a National Living Wage and the continued inaction on business rates, will cost businesses approximately £9 billion a year by 2020-21.
· Improve the business rates regime by switching the multiplier from the Retail Price Index to the Consumer Price Index.
· More frequent revaluations of business properties
· Smallest businesses should be lifted out of the tax
The CBI offered their judgment that getting rid of upfront NI contribution tax relief on pensions and the current marginal rate relief system could lead to a false economy.
Such changes could damage pension saving.
Finally, the CBI urged the Government to set a clear direction on energy policy and support investment in low-carbon energy. Sugesting the Budget should simplify energy-efficiency taxes.