In its Budget submission, the Institute of Directors (IoD) has outlined a range of proposals on the subjects of fiscal policy, business investment and infrastructure.
The IoD has urged the government to ensure that Brexit is not used as ‘an excuse for delaying much-needed and overdue broad-based reform’ of the UK tax system during the Autumn Budget.
Corporation tax should be ‘kept low’ in order to ensure that the UK remains competitive, and to encourage business growth, the business group stated.
Meanwhile, it also called for an increase in the Annual Investment Allowance (AIA) from its current level of £200,000 per annum to £1 million per annum. This, it believes, will help to boost investment, productivity and growth amongst UK firms.
The IoD called on the government to place a ‘strong emphasis’ on incentivising investment during the Budget, in order to help improve confidence levels amongst UK businesses. A survey recently published by the Institute revealed that business confidence has been falling since the beginning of 2017.
Commenting on the issue, Stephen Martin, Director General of the IoD, said: ‘We know the Chancellor has a difficult balancing act to perform, but amongst all of the loud voices crying out for more help, we urge him not to ignore the businesses feeling hesitant about their investment decisions.
‘Businesses are not asking for a big splurge, but for specific and targeted reliefs to encourage firms and individuals to invest.’
In its Budget submission, the Institute also urged the government to be ‘ambitious’ with its future infrastructure plans, and has called for the implementation of new technologies to be considered.
The Chancellor will deliver the Autumn Budget on Wednesday 22 November.