The CBI has called on the government to urgently reform business rates, calling them a 'growth killer'. According to a CBI survey, 76% of members said higher bills suppress investment, and 53% said uncertainty undermines long-term investment. The UK has the highest property tax levels in the OECD.
The CBI wants the government to remove the rule that total revenue from the tax must remain the same, improve transparency, and remove 'cliff edges'. Three in ten businesses said they would put 90-100% of savings into new investment. Energy costs are also a major problem, with electricity prices for UK industry around 60% higher than other advanced economies.
High energy costs are deterring foreign investment, with OpenAI putting UK data centre plans on hold. The CBI's call comes as the IMF downgraded its forecasts for Britain.