CBI: Osborne must build a budget for infrastructure

UK business leaders are calling on chancellor George Osborne to deliver a budget next month that attracts infrastructure investment, supports mid-sized businesses, and gets more credit flowing to companies of all sizes.

In its submission ahead of the 2012 budget, the Confederation of British Industry (CBI) urged Osborne to create a new capital allowance to attract investment into types of infrastructure that do not currently qualify, new forms of finance to help companies grow and take on staff, and structures that ensure environmental taxes encourage new growth.

The CBI pointed to the chancellor’s autumn statement proposals to stimulate infrastructure investment through the creation of pooled-investment platforms, allowing the likes of pension funds to play a bigger part, and a new-build indemnity scheme to help unfreeze the housing market as important steps to put into practice.

CBI director-general John Cridland said it was vital that Mr Osborne used the upcoming budget to advance his autumn statement pledges.

“Delivering private-sector investment in infrastructure, supporting mid-sized businesses, hammering out the details on credit easing, extending the Youth Contract to 16 and 17-year-olds, and introducing the New Build Indemnity Scheme for mortgages at the earliest opportinty will all provide a real boost for UK growth and jobs,” he said.

“With our economy firmly under the international spotlight, there is no time to lose: Plan A must become a reality.”