CBI calls on chancellor to support manufacturers

Business rates will increase in line with inflation by 10 per cent in April 2023 and the CBI is urging the government in a new report to address rates before manufacturers face a ‘tax cliff edge’ that could damage their businesses and hinder growth across the economy. According to the CBI, tackling business rates would also unlock investment to build new factories, employ more staff, and focus on net zero.

Extending the Industrial Energy Transformation Fund beyond 2025 would help stimulate energy efficiency drives and reduce demand.   

Matthew Fell, chief UK policy director at the CBI said the chancellor should use the Autumn Statement to simultaneously stabilise the economy and set out a credible platform for growth.

“The manufacturing sector has a big role to play in the UK’s growth story,” Fell said in a statement. “For every million pounds invested in the sector, the industry produces another £1.5m for the wider economy. To help unlock this investment, the government needs to address the business rates cliff edge. Without serious action ahead of next April, many businesses will struggle with eye-watering rises in their business rates.”