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UK businesses want focus on investment in tax changes

04 March 2024

The UK Recruitment and Employment Confederation surveyed business and found that they want a focus on business investment from the UK’s Spring Budget tax changes.

It found that 47.1% of businesses said improving the tax system to support business investment is what they most want to hear. That was ahead of the second most-popular answer, which was 11.3% for greater child support for parents.

Medium-size businesses with between 50 and 249 workers were the most enthusiastic when it came to taxes changes with 72.7%.

“We all know Britain has a problem with investment — yet it is companies committing to the long-term that drives the economy forward,” REC Chief Executive Neil Carberry said in a press release. “Using the tax system to help drive business investment should be a key tool. From IR35 to the Apprenticeship Levy, and expensing rules that leave out hired kit to business rates, the system puts more barriers in the way of companies than it should.”

In addition, the REC suggests the Exchequer in consider a “green tax credit” for businesses that invest in low carbon skills.

“There is no growth strategy that isn’t a green growth strategy,” Carberry said. “The UK has an opportunity to lead this new industrial revolution — but only if we lower barriers to investment, on tax and on planning.”

The survey took place by telephone in February and included 167 employers of different sizes in different locations across private and public sectors.