The high-wire act that the Chancellor needs to perform at the Budget is not an excuse for shying away from bold decisions. Rachel Reeves would ordinarily be forgiven for taking a cautious approach but the mess that the economy is in means tinkering around the edges is not an option.

Business Secretary Peter Kyle said the UK is “still in” a “growth emergency” as he appealed to industry leaders at the Confederation of British Industry (CBI) annual conference.

That drives home the predicament that the country finds itself in. The head of the Confederation of British Industry (CBI) Rain Newton-Smith urged the Government to change course and not inflict “death by a thousand taxes” on British business.

Ms Newton-Smith went on to challenge the Chancellor to prove that she was committed to economic growth.

CBI chief executive Rain Newton-Smith delivers a speech during the Confederation of British Industry (CBI) annual conference. PIC: Yui Mok/PA Wire

placeholder image — CBI chief executive Rain Newton-Smith delivers a speech during the Confederation of British Industry (CBI) annual conference. PIC: Yui Mok/PA Wire

“Short-term politics leads to a long-term decline, and this country cannot afford another decade of stagnation,” she said.

The issue though is that the Government must also tackle the social challenges Britain faces in the here and now.

But one area where the Chancellor can find some of the answers is investment in infrastructure. And as Henri Murison, chief executive of the Northern Powerhouse Partnership, points out, cutting back would be unwise.

“Otherwise, we will be reducing the amount of tax revenues which the next Chancellor, and successors, will have to spend,” he writes in today’s newspaper.

There are also reports that Reeves is going to impose a “mansion tax” on top three council tax bands.

However, that is not going to be enough when what is needed is complete reform of the current outdated council tax system. It’s no longer the early 90s. The system is simply not fit for purpose.