Business lobby CBI sets out list of post-Covid policy demands to government

New report calls for apprenticeship levy to be scrapped and new state support for industry

The CBI says the UK needs better support for exporters (Getty Images/iStockphoto)

Britain will “never have a greater opportunity” to transform its economy than the aftermath of the pandemic, according to the UK’s largest business lobby group.

In a report published on Monday the Confederation of British Industry (CBI) produced a long list of policy demands it said the government should pursue to “unite as a nation and transform the UK economy for the decade ahead”.

It called for government support for industry to be scaled up, while arguing that some obligations on firms should be scrapped.

The CBI urged the government to scrap its apprentice levy that funds new apprenticeships and instead said firms should only be required to invest in their own workforces, ending “cross-subsidy”.

And it called for the government to increase its research and development budget in this year's spending review to £22bn by 2024-25, and to roll out full fibre gigabit-capable broadband across the entire UK.

The report says the government should commit to developing seven battery "gigafactories" by 2040 to support electric vehicle development, and set up a Trade In Services Commission to lobby other countries to grant access to UK service businesses.

And it says NHS data should be made available "to reinforce the UK’s position as a global hub for clinical trials, life science innovation and data-driven healthcare".

The business group said the government should reform regulations to "prioritise investment", give businesses a greater say in running of the Bank of England, and set out a long-term "tax roadmap" to give certainty about the future.

And it urged the government to lay out a plan to reach net-zero carbon that involved spending public money with private businesses to “create markets for new green technologies”.

“This country will never have a greater opportunity to transform our economy and society for the better than we have right now,” said Tony Danker, CBI director-general.

"This is the moment where we have a genuine chance to make big bets on how the UK economy will grow and compete. To use that appetite to invest, to collaborate globally after a decade of protectionism.

"To lift thousands of young people out of limbo, so they can reach their potential, and to build on that bond between employers and employees closer than ever before."

Mr Danker said the CBI wanted to make the UK the most competitive and dynamic economy in the world.

He continued: "Decarbonising our economy is a planetary imperative, we can use our transition to net zero to create green jobs, to find sustainable solutions and sell them to the rest of the world.

"We can turn up the dial on UK innovation investment to make the UK the best place in the world to start and scale up a business.

"If we want to be a trading powerhouse, we need more UK firms to export – diversifying the products and services, and markets that they sell to."

Torsten Bell, chief executive of the Resolution Foundation think tank, said: “UK businesses are set for a decade of major economic change that the country is neither used to nor prepared for.

“From grappling with new trade and migration rules, to adapting to technological shifts and seeking opportunities from our net-zero transition, change is coming.

“The CBI rightly argues that making a success of this change requires us to be clear-eyed about the opportunities and challenges it brings. Instead of muddling through, now is the time to renew the UK's economy strategy to steer Britain successfully through the 2020s.”

Labour shadow chancellor Rachel Reeves said: "British businesses played a crucial role during the pandemic, and they are vital as we shape a fair economic recovery, and look to create the decent jobs that help people and places prosper.

"Today's report rightly underlines that we face a once-in-a-generation opportunity to shape the UK economy for a new future.

"Labour will work with businesses to unleash people's potential and help tackle the shared challenges we face as a society."