The Confederation of British Industry (CBI) CEO, Rain Newton-Smith, highlighted economic challenges post-Budget.
- In her speech, Newton-Smith applauded the end of fiscal instability but urged reforms.
- Key issues addressed included business rates, apprenticeship levies, and occupational health.
- Retail leaders voiced concerns about Budget impacts, warning of significant cost increases.
- Newton-Smith’s vision stresses collaboration between public and private sectors for sustainable growth.
Rain Newton-Smith, CEO of the Confederation of British Industry, addressed economic challenges at the organisation’s annual conference. During her speech, she emphasised that the recent Budget will likely squeeze business margins and profits. She praised the government’s efforts in stabilising finances, marking an end to a near-decade of fiscal instability.
Newton-Smith introduced the CBI’s new Blueprint for Competitiveness, a framework designed to enhance the UK’s global economic standing. At the heart of this initiative is the call for stronger public-private partnerships, which she sees as vital for turning economic challenges into growth opportunities. She urged the government to be bold in addressing issues such as business rates reform, flexibility in the apprenticeship levy, and boosting health incentives for workers.
Speaking metaphorically, Newton-Smith highlighted the potential for growth, stating: ‘We are standing on a shoreline… and in the distance, there’s an island: a vision of growth.’ She stressed that achieving this vision relies on the ‘ingenuity, ideas and investment of business leaders’ present.
The CBI is advocating for courage and confidence from the government, recognising some progress made by the Chancellor in maintaining fiscal stability and planning for corporate tax stability. Newton-Smith acknowledged these efforts, urging further decisive action.
The concerns of the business community were echoed in a letter to the Chancellor from nearly 80 retail bosses, including CEOs of major retailers like AllSaints, H&M, JD Sports, and M&S. The letter expressed significant worries about the Budget’s impact on the retail sector, especially due to the increase in National Insurance contributions to 15%. This change could cost the sector up to £7bn annually, affecting inflation, employment, and investment.
The CBI underscores the need for government reforms to navigate current economic challenges and foster sustainable growth.