The government’s Budget Board must focus on easing the cost of doing business, says the Institute of Directors (IoD).

The board has been created to link top ministers and 10 Downing Street officials with the Treasury in the run up to the Autumn Budget on 26 November.

The board will meet weekly and will be chaired by the Prime Minister’s new economic advisor Baroness Minouche Shafik and Treasury Minister Torsten Bell.

Anna Leach, Chief Economist at the IoD, said:

‘We are glad to see the government putting renewed energy into the growth agenda with a particular focus on business.

‘It is positive that the government has announced the creation of this body, bringing together teams across Number 10 and the Treasury, focussed on ensuring that the Autumn Budget delivers vitality to the economy.

‘Business confidence has fallen to historically low levels since last year’s Budget. Our own economic confidence index fell to its lowest ever level in July this year, with taxes and the wider economic climate dominating concerns amongst business leaders.

‘To be successful, this board needs to deliver a Budget that really works for business, with swift action to remove barriers to growth from the regulatory and tax system. We look forward to engaging constructively with the board to ensure the voice of enterprise is at the heart of its work.’

Internet link: IoD

Companies could be prosecuted and face unlimited fines if they fail to prevent fraud that their firm profits from under a new corporate offence.

The offence will hold large organisations to account if they profit from fraud. It forms part of wider measures introduced by the government to tackle fraud and protect the UK economy.

These have been introduced as part of the Economic Crime and Corporate Transparency Act (ECCT) 2023 and came into force on 1 September.

Under the new law, which was passed with cross-Parliament support, large organisations can be held criminally liable where an employee, agent, subsidiary, or other ‘associated person’ commits a fraud intending to benefit the organisation.

In the event of prosecution, an organisation will now have to demonstrate to the court that it had reasonable fraud prevention measures in place at the time the fraud was committed.

Lucy Rigby KC MP, the Solicitor General, said:

‘Fraud undermines our British values of fairness and playing by the rules. It hurts individuals and businesses, and harms business confidence.

‘This new legislation sends a clear message that large organisations must take responsibility for preventing fraud, and those that fail to do so will be prosecuted with the full force of the law.

‘This government is committed to protecting our economy and we’re determined that those who don’t play by the rules will be brought to book.’

Internet link: GOV.UK

Chancellor Rachel Reeves has been urged to cut National Insurance contributions (NICs) and increase Income Tax to create a ‘level playing field’ and protect workers’ pay.

The Resolution Foundation said the Chancellor should make a 2p cut to NICs as well as a 2p rise in Income Tax in the Autumn Budget.

The think tank said the move would help to address ‘unfairness’ in the tax system.

Adam Corlett, Principal Economist at the Resolution Foundation, said: ‘Significant tax rises will be needed for the Chancellor to send a clear signal that the UK’s public finances are under control.

‘Any tax rises are likely to be painful but given the fallout from the recent employer NICs rise, the Chancellor should do all she can to avoid loading further pain onto workers’ pay packets.

‘She can do this by switching our tax base away from employee NICs and onto Income Tax, which is paid by a far broader group in society. This should form part of wider efforts to level the playing field on tax, such as ensuring that lawyers and landlords face the same tax rates as their clients and tenants.

‘These sensible reforms would raise revenue while doing the least possible harm to workers and the wider economy. And by acting decisively, the Chancellor can turn her full attention back onto securing stronger economic growth.’

Internet link: Resolution Foundation

HMRC has split fuel advisory rates for electric cars depending on where drivers charge their company cars due to the price discrepancy between home and public chargers.

From 1 September 2025, the single rate for fully electric cars will be abolished and replaced with two different rates reflecting whether a car is charged at home or on a public charger.

The rate will be 8 pence per mile for home charging and 14 pence per mile for public charging. This will replace the current universal rate of 7 pence per mile.

These rates will be reviewed quarterly in line with petrol and diesel advisory fuel rates.

HMRC said:

‘The ‘Domestic electricity cost per kilowatt-hour’ is the Department for Energy Security and Net Zero annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.

‘The ‘slow or fast public charge cost per kilowatt-hour’ is the Zapmap public charging price index monthly published figure for slow or fast chargers (charging speed less than 50 kilowatts), uprated with the latest estimate of electricity prices from the Office for National Statistics.

‘A higher amount than the advisory rates can be used as long as you can show that the fuel cost per mile is higher. Therefore, if the public charger used is higher in cost per mile than the new advisory rate introduced for public charging, a higher rate can be used as long as you can show the cost per mile is higher.’

Internet link: GOV.UK

The Autumn Budget will be delivered on 26 November by the Chancellor of the Exchequer, HM Treasury has announced.

The Office for Budget Responsibility’s latest outlook for the economy and public finances will be released on the same day.

The Budget outlines the government’s plans for raising or lowering taxes and sets out its spending commitments for health, schools, police and other public services.

Chancellor of the Exchequer, Rachel Reeves said: ‘Britain’s economy isn’t broken. But I know it’s not working well enough for working people. Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change.

‘We’ve got huge potential – world-leading brands, dynamic industries, brilliant universities, and a skilled workforce. We’re a global hub for trade.

‘Fixing the foundations has been my mission this past year … but I’m not satisfied. There’s more to do. Cost of living pressures are still real.

‘And we must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules. It’s only by doing this can we afford to do the things we want to do.

‘If renewal is our mission and growth are our challenge. Investment and reform are our tools. The tools to building an economy that works for you – and rewards you.’

Internet link: GOV.UK