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22 Autumn/Winter 2021 ‘NO TIME FOR A PLAY-IT-SAFE’ CBI calls on government to unlock ‘wall of investment’. T he Confederation of British Industry (CBI) has urged the UK Government to invest in skills, innovation, net zero and to reform taxes to win huge private sector backing e not-for-pro t organisation that speaks on behalf of 190,000 businesses, says increases to capital allowances and a new ‘green’ focus can stimulate investment and accelerate decarbonisation e orts. Bold decisions from Government this autumn can unlock a ‘wall of investment’ from private sector investors with the power to turbocharge the UK’s recovery, bring levelling-up ambitions to life and underpin the transformation to a net zero economy, the organisation states. e call from the CBI came just days after a speech from Director-General Tony Danker, highlighting some of the risks of failing to unlock the spending the economy will need. e UK’s leading business organisation is urging Government to go for growth in its Comprehensive Spending Review. e CBI cites ONS data showing £900bn of pent-up corporate cash reserves stand ready to be invested as the economy reawakens after the shock of COVID – but warns the UK faces sti international competition to claim this prize. at is why the CBI is urging Government to bet big on UK industry by reigniting its role as a market maker, making smart investments in skills and infrastructure, and reforming taxes to reward companies which invest in research, innovation and green technologies. By creating a framework which encourages and rewards widespread business investment, Government can utilise the private sector’s nancial muscle to drive the economy towards future growth. Key asks of the Government include: • Stimulate longer-term business investment by committing to maintain more generous capital allowances beyond 2023, building on the success of the super deduction • Fundamental reform of the business rates burden, including removing disincentives preventing green improvements • Require all regulators to prioritise investment, net zero and innovation as part of their core remits • Focus on delivering a exible apprenticeship system, turning the apprenticeship levy into a lifelong learning levy • Improve people’s life chances by giving them the skills they need to succeed through individual training accounts for unemployed individuals and those with the biggest retraining needs. • Designate energy e ciency and heat as an infrastructure priority by providing a comprehensive long-term package of funding • Develop and invest in the decarbonisation pathways required to reach net zero across transport • Deliver on the Plan For Growth and Innovation Strategy, including front- loading the commitment to invest £22bn direct domestic R&D funding by 2024-25 • Enable business to help level-up across the whole of the UK by commissioning the CBI in the Levelling-up White Paper to write the playbook for successful economic clusters CBI Chief Economist Rain Newton-Smith said: “Decisions made this Autumn at the Budget and Comprehensive Spending Review will de ne the UK’s trajectory for the decade ahead. ey bring an opportunity to generate higher investment and growth with lower carbon emissions, and provide UK leadership in new markets. CBI Chief Economist Rain Newton-Smith