government needs to reconsider regulation and taxation rules to encourage more long-term investment, says Britain’s largest employers’ group.
The CBI is today calling for the government to focus on reforming investment guidelines and promoting the UK as a place to invest for domestic and foreign companies.
In its submission to the Business Innovation & Skills consultation, the CBI also calls for the government to encourage investors to take a more long-term view.
Matthew Fell, CBI Director of Competitive Markets, said: “There are issues that do need to be addressed to encourage more long-term investment, particularly changes to solvency and accounting rules, and to the tax system.
“There is also a need to establish greater clarity around the areas covered by the ‘public interest’ test. New takeover rules must prioritise transparency and certainty around bids, and the Stewardship and Corporate Governance codes should promote the building of long-term relationships between boards and investors.”
The CBI said it supports proposed changes to the takeover rules including changes to the ‘put up or shut up regime’ that reduce the period of uncertainty for takeover targets.