The City of London Corporation responds to the Spring Budget 2023

The City of London Corporation, Policy Chairman, Chris Hayward, said:

“The Chancellor has presented a sound and sensible budget. The UK continues to face a challenging economic outlook, yet it is positive to see that inflation is expected to drop faster this year than previously predicted. But we’re not yet out of the woods. 

“The Government has listened to our calls on how defined contribution funds can be better utilised to support high-growth industries to start, stay and scale in the UK. We have been working with the sector on a Future Growth Fund - a £50bn fund -which will give DC pension savers the chance to invest in growth companies. We look forward to working with the Government on these plans as they develop.

“We welcome the steps the Government are taking to boost growth and productivity by seizing on opportunities in the net zero space. These actions could allow us to draw in investments and compete internationally.

“The new UK investment zones are key to empowering real growth locally, rather than simply moving economic activity around. The new regenerations projects will help London, which is home to some of the most deprived neighbourhoods in the country.

“The Chancellor made the tough choice to increase corporation tax, for firms this is a bitter pill to swallow. And so, we are pleased to see he is providing some support to businesses with a new temporary capital allowance scheme. However, further work will be needed if we’re to unlock significant investment.”