Today's planned
spending review is the perfect opportunity for the Government to focus on
pressing domestic issues and lay the groundwork for the UK’s future growth,
according to the CBI.
In its submission to
the Treasury ahead of the Spending Review, the UK’s largest business group says
that sorely needed investment – in education and skills, local and digital
infrastructure, reaching net-zero and accelerating research and development (R&D)
– cannot be put off until after Brexit is resolved.
To do so would only
add to the uncertainty facing firms, further delaying investment decisions and
harming the UK’s competitiveness in the long-run. Now is the time to put the
building blocks in place for a comprehensive multi-annual spending review in 2020.
Among other
priorities, the CBI is calling on the Government to:
Invest in people and
reduce skills gaps
- Restore per pupil funding for
colleges and sixth forms to 2011/12 levels in the long-term
- Deliver new T-Levels and
following through on the previously committed £38 million by 2020/21
- Maintain the 0.5% rate at
which firms pay the Apprenticeship Levy for the duration of this
Parliament and publish Levy receipts and expenditure
- Protect per pupil funding for
schools in real terms
Boost local
transport and infrastructure spending
- Follow through on commitments
to deliver crucial large investment projects, including HS2, Crossrail and
Northern Powerhouse Rail
- Deliver full fibre
connectivity to the last 10% of homes and businesses
Make the UK the
world’s leading low carbon and innovative economy
- Encourage the retrofitting of
homes, particularly social housing, with energy efficient measures to a C
(or better) rating by 2030
- Subsidise the provision of
rapid charge points to complete coverage of electric vehicles in the UK
- Protect departmental R&D
spending and outline a route to reaching the 2.4% target
- Ensure funding from the
European Investment Fund is matched for the next financial year
Rain Newton-Smith,
CBI Chief Economist, said: “For three years, Brexit has consumed everything on
the political agenda, leaving much needed reforms and progress on domestic
policy stuck on the side lines.
“The UK has the very
best potential to become a high skilled, innovative, well-connected and
sustainable nation fit to face the opportunities and challenges of the
twenty-first century. The Spending Review is the time to put down the markers
to make this happen, and put an end to inaction and inertia.
“From investing in
young people to meet the opportunities of a modern economy to setting the UK up
to be the world’s leading low carbon economy and pushing ahead with major
national infrastructure projects, the Review is a golden opportunity to invest
in the UK’s future growth.”
Other commitments
the CBI wishes to see from the Government include:
- Develop a clear framework for
English devolution, with clear guidelines to support new deals
- Plug the gap in trade policy
staff within the Trade Policy Group, filling the 135 vacancies by 2020.
- Give the Industrial Strategy
Council statutory powers on par with institutions such as the OBR to
monitor and assess the government’s industrial policy.
