Recommendation 12

The Chancellor is correct to pinpoint business investment as a component of the UK’s shortfall in productivity compared to other major advanced economies. The UK’s record in this area has worsened since 2016. In addressing this investment shortfall the Chancellor’s focus on reforms to tax incentives is a good start, and the Treasury should take on board the criticisms made of the super-deduction while designing 64 Jobs, growth and productivity after coronavirus future tax incentives. But wider economic certainty and coherence and stability in the Government’s growth policy, which are currently deficient, are also important for getting businesses to invest.