Conversations with government on providing tax incentives for UK firms offering health benefits are proving “slow”, according to Jordan Cummings, health director of the Confederation of British Industry (CBI).
Cummings kicked off the Health & Protection IPMI Summit at the Grove Hotel with an address in which he revealed the business representative body was looking at the UK tax system and how firms could be incentivised to provide health benefits.
But in response to a question from the floor about what sort of discussions were currently being held with government on this subject, Cummings revealed the starting point for these talks have been tough.
“From government’s perspective, we spent way too much money on Covid. We’re not going to pay it back for 30 years and with the situation in the Ukraine, the defence budget also has to go up so there’s really no cash anywhere. So the starting point is tough,” he said.
“Almost every government department knows the system isn’t working so selling the empirical need for movement and widening uptake for health intervention is relatively easy.
“The Department for Work and Pensions, Department for Health and Social Care, the NHS, they’re all behind us when we go to the Treasury on these discussions. So there’s no issue of selling the need.”
Incentivising SMEs
But Cummings added these discussions are moving forward and the next 18 months could prove the most productive window for movement on this issue as the CBI discusses what firms already get tax relief for and new areas they could receive tax relief on.
“It is slow but it is happening for the first time for a while,” he added.
Asked why the CBI is focused on tax breaks, Cummings added that such measures could help incentivise millions of SMEs across the UK.
“Moving ordinary firms with no time, no HR department on to some kind of intervention when they have never had any is really hard, so one of the things we usually reach for is will you get a tax break?” he continued.
“It is quite binary and it’s a crude measure I agree, but moving lots of people a little way is tough without some kind of incentivisation that isn’t just a public information campaign.
“One thing we have explored is if there is an ongoing fund that government could basically give breaks from that would get reinvested into some kind of pool of firms that exist in a local area – similar to things like the apprenticeship levy.
“Is there some kind of longer term solution so it isn’t just government writing a cheque?”