The industry body‘s paper Cumulative Burden Analysis uses OBR estimates to calculate the annual extra costs associated with the Apprenticeship Levy (£3bn), National Living Wage (£4bn) and rising Business Rates (£2bn).
The report goes on to warn that these extra costs are likely to impact on business’s ability to create jobs, raise skills and invest in growth. To combat this the CBI has made a number of policy suggestions in its Budget submission.
They include a full overhaul of Business Rates, a clear strategy on energy policy and tax breaks for businesses looking to invest in innovative technology.
CBI director-general, Carolyn Fairbairn said the UK needs the means to “grow its way out of the deficit”.
“The danger of this rising policy burden is that it holds back businesses, particularly smaller firms,” she continued.
“This cost burden has now crept up far enough, if the government is serious about supporting the UK’s companies to drive growth in the economy.”
Siemens chief executive, Juergen Maier added that “policy certainty is crucial to deliver competitive, secure and sustainable energy in the UK”.
“Clarity on the future of the Levy Control Framework well beyond 2020, for example, will help the energy industry bring down costs and maximise jobs and industrial opportunities in renewable energy," he continued.