The announcement of a “Super Deduction” for capital investment should stimulate decisions from companies currently undecided about their expenditure plans. For every £100 they spend they will receive a tax credit of £130. The ability to carry back company losses for three years against earlier profits will also help the cash flow of many companies.
The Chancellor has announced the formation of a UK Infrastructure Bank with an initial capitalisation of £12 billion, which he hopes will stimulate investment of £40 billion. The CEA welcomes this as a way of leveraging additional investment in “green” construction projects.
Grants for taking on new apprentices are to be doubled to £3,000 and a “Help to Grow” initiative will offer 90% grants for a new executive development programme. This provides additional incentives for companies to restart their hiring plans and to upskill their existing work force.