Business groups such as the Federation of Small Businesses (FSB) have urged Chancellor Philip Hammond to emphasise that the “UK is open for business” in this year’s Autumn Statement, which is due on 22 November.
As well as calling for money to be spent on infrastructure and training, they are asking for the tax burden on firms to be eased by switching business rate hikes from the retail prices index (RPI) to the lower consumer prices index (CPI) and by exempting new investment from the local levy.
According to the Confederation of British Industry’s (CBI) submission, the UK’s tax system should “help rather than hinder” firms’ competitiveness and underline the country’s attractiveness as a fantastic place to do business.
A spokeswoman for the organisation also said that to create stability, the Chancellor should set a high bar for tax changes, focusing on targeted measures that address the current economic challenges and that support investment and productivity growth.
Meanwhile the FSB has asked Mr Hammond to rule out any new business tax increases and to maintain investment incentives, including Entrepreneurs’ Relief and the Enterprise Investment Scheme (EIS).
As a spokesman for the business group pointed out, the UK lags behind the EU when it comes to producing serial entrepreneurs, adding that if the UK is to catch up and enhance its international competitiveness post-Brexit, investor incentives must be protected.
The European Investment Fund (EIF), which committed around €2.8 billion to the UK between 2011 and 2015, has already delayed giving commitments to several UK venture capital funds following the EU referendum, saying that it needed to complete more due diligence.
Meanwhile, the Wine and Spirit Trade Association (WSTA) has called for a freeze to wine and spirit duty “to help back British business and bolster Brexit trade deal opportunities”.
