In advance of the Autumn Statement on 22 November, the Institute of Directors has written to the Chancellor of the Exchequer summarising its proposed list of policy changes that would have the greatest positive impact on the rate of sustainable economic growth in the UK.
The letter sets out five key policy recommendations:
- Tax credits for companies that train staff to meet national skill shortages
- Stronger incentives for SME net zero transition – such as a differential corporation tax rate
- Permanent 100% capital expensing
- An export target based on volumes, not values, and the proportion of companies that export
- Greater reputational pressure on slow invoice payers
In his letter, IoD Director General Jonathan Geldart states:
“There has long been a debate around the need to raise productivity in the ‘long tail of British industry’. There is therefore much to be gained by thinking of interventions that shape the broader economy rather than focusing exclusively on segments that are already market-leading, important though those are.
“We understand the desire on the part of government to work with strategically important ‘priority’ sectors, but to do so exclusively misses a broad swathe of economic activity. Over half (56%) of our members do not identify as being in one of the government’s five current ‘priority’ sectors, yet their activities are no less significant to our national prosperity.
“Regardless of size or sector, 88% of our members want to see an industrial strategy that defines long-term objective for business in terms of priorities and policies… We [have] set out our key recommendations that would have the greatest impact on prospects for Britain’s future prosperity.”