The recent Autumn Budget has sparked significant concern within the UK business sector, notably voiced by Rain Newton-Smith, CEO of the CBI.
- Margins are expected to be under pressure, with profits anticipated to be impacted due to recent budget changes.
- Newton-Smith emphasizes the importance of business rates reform and more flexible apprenticeship levies.
- A call for enhanced public-private partnerships to tackle economic challenges and foster growth was made.
- Retail industry leaders echo these concerns, pointing to potential inflation and employment effects.
In the wake of the Autumn Budget, Rain Newton-Smith, CEO of the Confederation of British Industry (CBI), highlighted the pressing challenges facing UK businesses. Stating in her address to the CBI’s annual conference, she praised the government for ending a decade of instability but pointed to immediate concerns about profit margins and how they might be affected by recent budgetary measures. Newton-Smith did not shy away from emphasizing that margins will tighten and profits could dwindle.
She specifically called for urgent action on reforming business rates and the need for more agility regarding apprenticeship levies. By launching the CBI’s new Blueprint for Competitiveness, she showcased the organization’s commitment to pushing policy frameworks that will strengthen the UK’s competitiveness on a global scale. Newton-Smith underscored the pivotal role of “public-private partnerships built for success” in transforming current economic challenges into sustainable growth opportunities.
In her impassioned speech, Newton-Smith stated, “Right now, we – this country, this government, this room of brilliant business leaders, we are standing on a shoreline. And in the distance, there’s an island: a vision of growth.” This vision, she argued, rests in the hands of the business leaders present, whose ingenuity and investment are crucial.
Furthermore, the CBI has appealed for confidence and bold decision-making from the government, acknowledging the steps already taken towards stabilizing public finances. Newton-Smith recognized the adjustments in fiscal rules to accommodate necessary capital spending and the establishment of a corporate tax roadmap as positive developments.
Adding to the discourse, almost 80 retail leaders supported this view by signing a letter addressed to the chancellor, expressing their concerns about the budget’s implications. These leaders, including prominent names such as AllSaints CEO Peter Wood and H&M’s Henrik Nordvall, stressed the potential increase in costs for the retail sector, which could rise by up to £7 billion annually due to the budgetary changes. They cautioned about the adverse effects on inflation, employment, and investment.
The CBI’s call to action signifies the urgent need for strategic responses to the budget’s impacts on UK businesses.
