The CBI has called on the coalition government to axe the 50p tax rate and to dismantle employment protection introduced by the last government in a bid to “get the UK working again”.

 
The employers’ lobby group outlined its priorities for the government’s Growth Review in a letter to Chancellor George Osborne, demanding that he focus on three key areas in his March Budget.
 
John Cridland, the CBI’s director general, said: “This Budget must demonstrate a relentless focus on growth to help get the UK working again. We need an all-action Budget, which boost exports, investment and jobs.”
 
To this end, the body said that the government needed to address taxation issues, which it claimed were discouraging entrepreneurship and undermining UK competitiveness. As a result, the 50 pence personal tax rate, which was put in place by the last government and retained by the current one as a deficit reduction measure, should be abolished.
 
The CBI also called on the government to return to the pre-1997 position on employment rights by doubling the current one-year threshold on unfair dismissal claims to two years. The aim here was to “give companies more time to assess the potential of a new employee, thereby giving firms the confidence to hire new staff without the threat of a tribunal if it doesn’t work out” it said.
 
But the employment tribunal system itself should also be revamped to “weed out weak and vexatious claims”, the lobby group added.
 
Other proposals included enhancing the existing Enterprise Investment Scheme to bridge the funding gap for large small-to-medium enterprising requiring financing of between £2 million and £10 million and piloting Growth Zones to attract investment.
 
Ian McCafferty, the CBI’s chief economic adviser, said: “As spending cuts put household spending under even greater pressure, the Budget must create the right conditions for businesses to invest and grow. Given that much more growth will have to come from exports and corporate investment, the role of the UKTI in helping firms exploit overseas opportunities will be crucial.”