There is concern that the end date for the 130% super deduction from April, combined with the increase in the corporation tax rate to 25%, will dent investment.

UK is getting less competitive and has lost out on estimated £4.3bn of green growth market value in Europe alone, according to the CBI, and in April will fall from 5th to 30th place in the OECD table on tax competitiveness.

Director-general of the CBI, Tony Danker, said: ‘Our international competitors in Europe, Asia and the US are going hell for leather on green growth and getting firms investing. We are behind them now and seem to be hoping for the best.’

Early data shows that the UK could stay stuck in a low growth trap as the major drivers of productivity grind to a halt. This makes the Chancellor’s Spring Budget a key point in the government’s turnaround strategy.

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