The recent Budget presents new challenges for businesses, according to the Confederation of British Industry (CBI).
- Rain Newton-Smith, CEO of the CBI, delivered a key speech addressing these challenges at the annual conference in London.
- Newton-Smith emphasised the need for public-private partnerships to navigate economic difficulties effectively.
- Proposed changes include reforming business rates, adjusting the apprenticeship levy, and enhancing workforce health incentives.
- Retail industry leaders have expressed concerns about increased costs due to the Budget, suggesting a potential rise in inflation.
The Confederation of British Industry (CBI) has raised concerns about the impact of the recent Budget on profit margins and overall business profitability. In a significant speech, Rain Newton-Smith, CEO of the CBI, addressed these issues at the organisation’s annual conference. Her speech marked her first major public address since the announcement of the Autumn Budget.
Newton-Smith commended the government for bringing stability after a period of economic turbulence. However, she urged immediate action on several pressing business issues, highlighting the necessity for business rates reform, and increased flexibility on the apprenticeship levy. Additionally, she stressed the importance of boosting occupational health incentives to ensure a healthy and productive workforce.
Newton-Smith introduced the CBI’s new Blueprint for Competitiveness, aimed at strengthening the UK’s competitive standing in a rapidly-shifting global economy. She identified public-private partnerships as essential to turning economic challenges into opportunities for sustained growth.
During her speech, Newton-Smith used a compelling metaphor of the nation standing on a ‘shoreline’ looking towards an ‘island of growth’. She noted that real, sustainable growth can only be achieved through the ingenuity, ideas, and investment of business leaders present at the conference.
The CBI is calling on the government to exhibit bravery and confidence, particularly after the Chancellor demonstrated stability in public finances and implemented a corporate tax roadmap. This move aims to provide businesses with long-term certainty.
Alongside CBI’s internal advocacy, key figures in the retail industry have voiced their apprehension in a letter to the Chancellor. Signed by nearly 80 retail executives, the letter warned of the detrimental effects of the Budget on the retail sector, citing potential increases in inflation, employment challenges, and investment hurdles. Rachel Reeves, the Chancellor, acknowledged the tough decision to raise National Insurance contributions for employers, a change expected to cost the retail industry up to £7 billion annually.
The Budget’s implications are influencing strategic planning and cost management across the business sector.
