The British Chambers of Commerce (BCC) says the Autumn Budget must sharpen the UK’s competitive edge to stay ahead of the pack in an increasingly dog eat dog world.
It is calling for immediate action to cut the costs deterring investment, simplify regulations to unleash business and update its strategic offer.
Among the recommendations in a new report, published today, the BCC is calling for ministers to:
- Commit to no further increase in taxes that add to labour costs.
- Axe the windfall tax on oil and gas to address energy costs for business and provide a clear strategy for the North Sea’s transition to a renewable future.
- Prioritise further infrastructure investment to support growth, including the new runways at Heathrow and Gatwick, and expansion of Luton airport.
- Put rocket boosters under our economic diplomacy to unlock the full potential of ‘Brand Britain’.
The report has been produced by the BCC’s Global Britain Challenge Group, drawing on expertise from businesses, academics and think tanks.
The report highlights how the UK has fallen in global competitiveness rankings from the 9th most competitive nation in 1997 to 29th now.
This slide has come at a time when international trade has been upended, and geopolitical upheaval is making every nation pause to assess its strategic business alliances.
Against this background, it outlines how it is more important than ever that the UK stands out from the crowd.
The report has more than 40 recommendations in total. It also calls for business rates to be revamped, a moratorium on new corporate reporting standards that impact the UK’s attractiveness for investment, and an annual audit of the UK’s competitiveness.
Shevaun Haviland, Director General of the British Chambers of Commerce, said:
“If the UK economy is not competitive then it cannot grow. Our slide down the rankings has been driven by increasing volatility on tax and regulation which has led to an inexorable rise in the cost of doing business.
“There is also growing speculation about what’s coming in the Autumn Budget, which is still weeks away. This is eroding business confidence further as the government’s messaging of ‘tough choices’ adds to the fear.
“But the Budget can be the decisive moment we need to back British business and put the economy on the front foot.
“The UK is bursting at the seams with innovative ‘can-do’ businesses, that are eager to grow and make the most of the UK’s extraordinary talent, creativity and technical expertise.
“We have a great story to tell. We are the sixth largest economy in the world, the fifth largest exporter and have the third largest stock of inward investment assets.
“But we are not currently the sum of all our parts. Our message to the rest of the world has been inconsistent. If we want the UK to be more productive and to grow our economy, then we must take action to become more competitive internationally.
“That means a focus on cutting costs, supporting innovation and taking a more strategic approach. The UK’s soft power is the envy of the world, but it is rarely used with precision as an economic tool to exploit the many advantages we have.
“Adopting even a few of this report’s recommendations will make a positive difference but delivering all of them would power the economic growth our people and businesses deserve.”
The full report can be found here.