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The CBI commented on a series of Government reforms that came into force on April 1 2013:

• Corporation Tax will be cut to 23%;

• the Financial Services Act comes into force, abolishing the Financial Services Authority and reforming supervision of the financial services industry;

• new “Patent Box” and extension to existing tax credit for research & development (R&D) ;

• mandatory reporting of greenhouse gas emissions for all businesses listed on the main market of the London Stock Exchange;

• the first stage of the Help to Buy scheme – announced in Budget 2013 – with a 20% shared equity loans to house buyers.

On Corporation Tax being cut to 23%:

Katja Hall, CBI Chief Policy Director said:

“Our tax regime needs to be internationally competitive to boost business confidence. This is another step to the UK having the equal lowest Corporation Tax headline rate by 2015 and sends a clear signal that the UK is open for business.

“We need to go further to make taxes across the board more competitive. Conditions remain tough for many firms, particularly retailers on the high street. The surprise cut in employers’ National Insurance in the Budget is a good first step but ministers need to look urgently at easing the burden of business rates for firms at the frontline of consumer spending.”

On the Financial Services Act:

Ms Hall said:

“Stronger regulation and supervision is vital if we are to avoid another financial crisis and create a more stable system.

“The biggest challenge for the new regulators will be striking the right balance between restoring trust and promoting economic growth.

“Given the tough economic climate, business will look very carefully at how the regulators interpret their new growth objectives, to make sure lending is not held back.”

On the Patent Box and R&D tax credit:

Ms Hall said:

“For years the UK has lagged behind our competitors in attracting new investment in innovation and R&D.

“The Patent Box has real potential to promote innovation – vital to protecting high-value manufacturing jobs and keeping patent income within the UK.

“The extension to the existing tax credit will stimulate new invest in R&D at all points in the business cycle and supply chain.

“It’s encouraging the Government is now taking firmer steps to long-term investment in R&D in the fast-growing, high-potential sectors– aerospace, automotive, agritech and energy. The failed industrial policies of the 1970s mean politicians have shied away from this area for decades but given the tough economic climate, we need to pursue all avenues of growth aggressively.”

On mandatory carbon reporting

Ms Hall said:

“Mandatory reporting will arm businesses with clear data so they can cut carbon emissions cost-effectively. It could unlock investment as firms look to make all levels of their operations much more efficient.”

On Help to Buy:

Ms Hall said:

“Minsters must get the house market moving. House building is a quick win for the economy – stimulating the construction industry, creating jobs and boosting consumer confidence.

“The new £3.5bn equity loan scheme, alongside investment in build to let projects and affordable housing will boost the supply of new homes. 

“The details on the mortgage guarantee scheme, coming into force next year, need to be ironed out. We will work hard with the Government to make sure doesn’t just stimulate demand but also boosts construction.”

Note to Editors:

1. The first stage of the Help to Buy scheme, announced in Budget 2013, comes into force on 1 April 2013. The Government will:

• provide an equity loan worth up to 20 per cent of the value of a new build home, repayable once the home is sold;

• significantly widen the eligibility criteria to ensure as many people as possible are able to benefit.

• the maximum home value will be £600,000 and there will be no income cap constraint; and

• ensure that the scheme is open not only to first-time buyers but also to all those looking to move up the housing ladder.

2. Financial Services Act 2012 comes into force on April 1st 2013. It will:

• establish a macro-prudential authority, the Financial Policy Committee (FPC) within the Bank of England, to monitor and respond to systemic risks;

• clarify responsibilities between the Treasury and the Bank of England in the event of a financial crisis by giving the Chancellor of the Exchequer powers to direct the Bank of England where public funds are at risk and there is a serious threat to financial stability;

• transfer responsibility for significant prudential regulation to a focused new regulator, the Prudential Regulation Authority (PRA) established as a subsidiary of the Bank of England; and 

• create a focused new conduct of business regulator – the Financial Conduct Authority (FCA) – which will supervise all firms to ensure that business across financial services and markets is conducted in a way that advances the interests of all users and participants. 

3. The Patent Box enables companies to apply a 10% Corporation Tax rate to all profits earned after 1 April 2013 from any patented inventions and other qualifying intellectual property. In the first year this proportion will be 60% and increase annually to 100% from April 2017.

4. The headline rate of Corporation Tax for non-ringfenced profits will be cut to 23% for the financial year starting on 1 April 2013. Legislation introduced in the Finance Bill 2013 will reduce the headline rate to 21% for the financial year starting on 1 April 2014 and 20% on 1 April 2015 – the joint lowest in the G20.

5. The Government is introducing an above the line tax credit for R&D investment from 1 April 2013 – with a minimum before tax benefit rate of 9.1%. It will initially be optional but mandatory from 1 April 2016.

6.  The Deputy Prime Minister announced last year that from 1 April 2013, all companies listed on the Main Market of the London Stock Exchange would be required to include emissions data for their entire organisation in their annual reports – the first country in the world to do so. The regulations will be reviewed in 2015 and ministers will decide whether to extend the approach to all large companies from 2016.

7. The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi the CBI communicates the British business voice around the world.