Here's what Rachel Reeves should do in the Budget instead of 'death by a thousand taxes'
With the UK Budget just a week away, the clock is ticking for the Chancellor to make the bold decisions necessary to boost the UK’s economic growth.
The CBI has made it clear: business will judge this Budget’s success on its ability to inject immediate momentum into a stuttering economy and give firms and consumers confidence that stability lies ahead.
For businesses and people in Yorkshire and the Humber, this means a focused effort on reform, simplification and alignment of incentives that will directly boost business investment and job creation right here on the ground. The CBI’s latest budget submission identifies immediate steps the Chancellor can take to chart a decisive path back to growth, with a focus on areas that are critical for local prosperity.
First, the government must fast track critical infrastructure. Growth in Yorkshire and the Humber is shackled without essential infrastructure. We call on the Government to hire 600 additional planners to deliver a liberalised planning system and press ahead with the next generation of public-private partnership models to get private money and expertise working for the public good.
Second, focusing on skills delivery to maximise our workforce potential is crucial. This includes finding a landing zone for the Employment Rights Bill that doesn’t harm job prospects or shortchange economic growth, scrapping plans to introduce an International Student Income Levy and delivering 100 per cent flexibility for the Growth and Skills Levy.
Third, the Government needs to harness the best in innovation and technology to modernise our economy. This means scaling technology by leading the development of a national technology adoption plan and delivering technology adoption support for all sectors. Tax credits must also be expanded to include capital spending, and we must use government procurement as a strategic lever to scale innovation by embedding Contracts for Innovation.
Finally, delivering policy with a relentless focus on improving competitiveness is key. This means addressing the UK’s disproportionately high energy costs by supporting a targeted discount scheme that enables electrification of processes.
It is also imperative to provide the resources required to help businesses unlock exporting opportunities and improve the liquidity of the London Stock Exchange through the removal of Stamp Duty on Shares and the Stamp Duty Reserve Tax.
The CBI is unequivocally calling on the Government to challenge party orthodoxy and take the strategic decisions needed to deliver long-term stability and growth. ‘Death by a thousand taxes’ is not a credible way to deliver a thriving economy. With business tax at a 25-year high, firms simply cannot endure a repeat of last year’s cost-raising Budget.
Short-term thinking will inevitably lead to long-term decline, and this must be avoided at all costs.
The reality is that the economy is in stasis - strategies have been designed, but action has lagged, exacerbated by rising business costs and policy uncertainty. The goal of a growing economy will not be achieved until real headroom is created and the cycle of short-term thinking is broken.
This Budget is the chance to make that break - to deliver stability, boost investment, and give Yorkshire and the Humber the solid foundation for sustainable, long-term growth.
Olga Watterich is CBI deputy regional director for Yorkshire and Humber