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29.1°C
ESE 15mph
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P.ublished 8th July 2024
business
Chancellor Right To Focus On Long-Term Stability And Growth
Image by Сергей Корчанов from Pixabay
“The Chancellor is right to focus on the need to deliver stability and growth for the long-term. It is great to hear priority being given to addressing the UK’s sclerotic planning system, and the delivery of renewable energy, and we look forward to further details on the National Wealth Fund.
“Specifically, we are looking for the new government to address some of the key challenges affecting the economy. Labour and skills shortages remain persistent issues for our members, as does the trading relationship with the EU. An industrial strategy which drives investment is needed in order to build long-term confidence in UK stability, and to lift productivity and living standards.
“In the lead up to the General Election, the IoD has been in regular dialogue with the new Chancellor and her team, and we are reassured by her rhetoric around wanting to work in partnership with business.
“We look forward to working with the new government to create a resurgent UK economy in which individual companies and directors have the confidence to invest and grow.”
Businesses will be encouraged to hear the Chancellor speak clearly and passionately about making growth the defining priority of government and to committing to the three pillars of stability, investment and delivery needed to achieve it. With improvements to public services and living standards dependent on a step change from the sluggish levels of growth we’re currently seeing, it’s clear that the government needs to hit the ground running.
Firms will welcome the Chancellor wasting no time in committing to tackle the burdensome and time-consuming planning processes that are holding back critical investments in infrastructure and housebuilding. Making sure we have the planning officers and coordinated oversight we need to forge ahead with projects is vital to ensuring a consistent, long-term approach that will boost investor confidence.
Better coordination across central government, and between Whitehall and UK regions and nations, on areas like infrastructure will not only boost connectivity, but help us press ahead with our net zero transition and highlight investment opportunities across every part of the country. The CBI has long argued that removing the ban on onshore wind would green our energy supply and help the UK take advantage of a huge green growth opportunity, so it’s welcome to see that being delivered so swiftly.
While government can lay the foundations for growth, it’s business that will bring the innovation, ideas, and investment to make them a reality. That’s why we welcome Labour’s openness to working with business to really go for growth and bring much needed momentum back to our economy. The CBI stands ready to play a leading role in that partnership for prosperity and in delivering for people across the country.
“Rachel Reeves is right to emphasise the importance of growth in tackling Britain’s challenges. Everything from funding public services to a higher quality of life is possible with more growth.
“Undoubtedly, the most exciting part of the agenda is the government’s immediate plans to reform the planning system, including restoring housing targets, cutting red tape for major projects and ending the de facto ban on the on-shore wind. The emphasis on using powers to promote growth could unlock major opportunities. But this must be the floor, not the ceiling, of the government’s ambitions. Far more reform will necessary to be done to solve the housing crisis.
“The focus on stability is necessary, but not sufficient, though rejecting calls to change approach by borrowing and spending sends the right signal. The state investment agenda, including the national wealth fund, should raise eyebrows. It's unclear how relatively small amounts of money, dolled out by bureaucrats to whichever businesses have the best lobbyists, will stimulate growth. Industrial policy has failed in the past, including under Conservative governments, and it’s hard to see it working this time.”