The Chancellor must use his forthcoming Budget to ‘do no further harm to business’ and begin reversing the tide of rising tax, regulatory and employment costs, BCC President Andy Haldane has warned.
In a speech to business leaders from the North East Chamber of Commerce, at the Glasshouse International Centre For Music, in Gateshead, he said the priority must be easing the cost of doing business. He argued that this was the only durable way to bring down the cost of living and unlock stronger growth.
But he also offered clear reasons for optimism. The global economy has proven remarkably resilient to multiple geopolitical shocks, supported by agile firms that have rewired supply chains and kept trade and energy flowing. Meanwhile, UK growth has been broader than expected, with private-sector output and productivity showing signs of improvement.
His comments were made at yesterday’s inaugural British Chambers of Commerce Growth Roadshow, in partnership with the North East Chamber of Commerce. The event analysed the latest economic survey data from firms in Chambers, nationally and locally.
This showed that while more firms are expecting growth in the future, this is yet to translate into higher investment, with just 17% planning to increase levels, the lowest since the pandemic.
Mr Haldane said:
“The Chancellor should take the Hippocratic oath at this Budget: first, do no further harm to business. Firms have faced a relentless rise in tax, cost and regulatory pressures. Adding to that burden would weaken confidence, deter investment and put the brakes on growth.
“Better still, the Budget should start lowering the cost of doing business. That is the most sustainable route to easing the cost of living, raising productivity and giving companies the confidence to hire, invest and expand.
“There are genuine reasons to be cheerful. Businesses have shown extraordinary agility through successive global shocks. The UK remains one of the most innovative economies in the world, AI adoption is gathering pace, and there are early signs that private-sector productivity is strengthening.
“Business balance sheets are also in relatively good shape. The opportunity now is to turn that resilience into momentum. If government provides stability, backs local growth and removes barriers rather than erecting new ones, it can unleash the animal spirits of firms in every sector and every part of the country.
“The sky genuinely is the limit, but the Budget must clear the runway.”
Mr Haldane also highlighted the importance of devolution, arguing that local leaders need meaningful powers to raise and spend money and to shape growth plans around the needs of their economies. He pointed to the North East’s strengths in clean energy, automotives, advanced manufacturing, AI and creative industries as evidence of the potential that can be unlocked when business, government and civic institutions co-operate.
John McCabe, chief executive of the North East Chamber of Commerce, added:
“The message from the North East is clear: this region has the ambition, the expertise and the potential to accelerate the delivery of good growth. But this will not come from ambition alone. It requires the right conditions for firms to invest, recruit, innovate and expand.
“That’s what we’re asking of government in next week’s Budget: to create the conditions that will allow businesses to convert their ambition into investment, productivity, jobs and good growth.”