UK business wishlist

When George Osborne gives his autumn budget statement tomorrow, he will have to defend the Coalition’s austerity programme in the face of plummeting UK growth figures. Independent forecasts have halved next year’s economic growth to a little over 1%.
Ahead of the speech, British business federations have issued their early Christmas lists to the Chancellor, reflecting their members’ priorities in this uncertain economic climate.

The Confederation of British Industry (CBI), steadfast supporters of the government’s deficit reduction plan, has asked Osborne to attract more private sector investment. It also wants to see the government reinstate the public-funded road projects, delayed since 2010, as well as a tax rebate for energy-intensive companies to protect them against the planned carbon floor price. This is also backed by the Engineering Employers Federation.

The British Chamber of Commerce (BCC) is backing government plans for more quantitative easing, and the imposition of negative interest rates on deposits held by commercial banks at the Bank of England to help boost credit availability. It is also asking for a waiver on national insurance contributions for all sole traders, for one year starting from the first date of employment. The chambers also call on the government to remove their ringfencing on health and overseas spending if economic conditions do not improve before the 2012 budget.

The British Retail Consortium is asking the chancellor to target labour rights, alongside a request to keep national minimum wage increases to 2.1% or below. The Financial Times reports the BRC also wants the government to pressure the European Commission to accelerate plans for a digital single market, as retail moves increasingly online.
Elsewhere, the Federation of Small Businesses is targeting the volatile fuel market, laying out a detailed model for a new fuel duty stabiliser. The Institute of Directors, thinking long term, have asked Osborne to abolish the 50% income tax rate, and reduce corporation tax to a mere 15% by 2020.