THE GOVERNMENT should establish a dividend tax credit aimed solely at new projects to make investing in infrastructure more attractive to defined benefit pension funds, the Confederation of British Industry (CBI) has said.
The tax credit would be designed to attract new investment by UK pension funds, could be taken up over a five-year period, and would last the duration of the investment.
The proposals form part of a wider report, entitled An offer they shouldn’t refuse: attracting investment to UK infrastructure, in which the CBI explores ways of raising up to £250bn to improve the UK’s creaking infrastructure – although it admits it is a tall order.
John Cridland, director-general of the CBI, says “infrastructure spending offers the UK the elusive growth boost we are all seeking”.
He added: “As this report makes clear, if we want to see the billions of pounds needed to upgrade our ageing infrastructure and secure jobs and growth for the long term, the government must make smarter use of limited public finances.”
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