11th March 2013
The Confederation of British Industry has issued a list of recommendations for the Chancellor to consider in the Budget next week including help for second-time home buyers. It also wants the Government to extend the Isa regime to allow first time buyers to save for a deposit in a tax efficient way.
The trade body is arguing that help should be made available to both first and second-time buyers in addition to support for householders refurbishing homes and for smaller house builders struggling to access finance.
The CBI says its proposals would form part of a fiscally-neutral Budget which would shift £2.2 billion from current spending to high-growth areas. This would include £1.25 billion on capital investment – including housing – and £950 million on high-growth business tax measures, such as a 2 per cent cap on the planned increase in business rates and the removal of Stamp Duty on equity finance for mid-sized companies.
CBI director-general John Cridland says: “The Government must stick to its fiscal plan but now is the time to kick-start confidence. Our measures will provide another boost for the housing market and will benefit first-time buyers, those trapped in negative equity and those looking to refurbish their homes.
“To boost the construction sector, we are calling for 50,000 new affordable homes to be built, incentives for refurbishing empty homes and the housing guarantee scheme to be extended to all types of housing.
“We must supercharge the NewBuy scheme to allow second-time buyers struggling to get on the next rung of the property ladder.
“With its relatively short lead-in times, house building offers the most bang-for-buck in growth terms – unleashing pent-up demand, while creating jobs and growth.”
The CBI is also calling on the Government to bring forward its road spending and repair programme, as well as strengthening support for exporters and for smaller firms struggling to access finance.
The employer organisation’s wish list is in full below.
High-growth business tax measures
On the business tax regime, the CBI is calling for the Government to make the UK more internationally competitive by:
Delivering on wider infrastructure promises
The CBI is also calling on the Government to:
Measures to help high-growth firms access finance
The Government should also take steps to ensure that those firms with the capacity to invest and export can do so. There also needs to be a greater commitment to delivering an industrial strategy that champions key sectors, while protecting investment in research and development. The Government must: