IoD in plea for tax incentives

THE next government has been urged by senior business leaders and entrepreneurs to unleash a “blitz” of investment incentives to kick-start productivity growth and reinvigorate the regions.

The Institute of Directors today demands action to tackle skills gaps, lagging infrastructure and spending put on hold by “battered and bruised” companies amid political uncertainty.

While admitting that lingering question marks over the UK’s trading relationship with the EU will restrict companies’ growth ambitions, it urged political parties not to use Brexit as a “get-out clause” from tackling the challenges.

It wants a new productivity tax incentive for SMEs (small and medium-sized enterprises), business rates holidays for firms investing in their organisations and regional zones with growth incentives in areas in need of investment.

The IoD argues firms are being held back by skills gaps. It wants incentives for lifelong learning through tax breaks and better use made of the UK’s “worldclass” universities to drive up research and development.

IoD chief economist Tej Parikh said: “From backing start-ups and scale-ups, to speeding full-fibre broadband delivery and strengthening the links between universities and SMEs, there’s no shortage of steps government can and should take to put our economy on the front foot and reinvigorate the regions.

“After years of bottled-up investment, we have to make up for lost time to sort out the country’s dire record on productivity.

“Parties have signalled their intention to spend big in the years ahead, but there’s no point filling the tank with fuel if the engine still needs a service. ”