UK business leaders have challenged the next government to deliver economic growth and business investments within the first 100 days of Parliament.
The Confederation of British Industry (CBI) has set out immediate priorities for the new government, which will lead the nation after the July 4 general election.
It its Business Manifesto, the CBI called on ministers to “revitalise brand Britain” and deliver a cutting-edge trade and investment strategy. The group’s vision has been formed following discussions with over 400 business leaders and 70 trade associations.
“Top of the in-tray should be sharpening the investor pitch for ‘Brand Britain’ – ensuring we are at the very top of the league table when it comes to investment. At the same time, a focus on building momentum behind the ‘big three’ enablers across tax, planning and the labour market within the first 100 days can give firms a clear flightpath for growth,” said CBI Chief Executive Rain Newton-Smith.
In the past five years, the economy has been focusing more on “shock absorption than on boosting growth,” the CBI said.
Economic growth, inflation easing, and reduction of national debt are the top three priorities listed by the Conservatives ahead of the July vote. Similarly, economic stability tops the opposition’s pledge list.
Turbulent Economy
The CBI Business Manifesto, published on Monday, highlighted the turbulent economic conditions for UK businesses, exacerbated by historically high levels of inflation and interest rates.A sluggish recovery from the technical recession at the end of last year saw the UK inflation rate drop to 2.3 percent in April, from the peak of 11.1 percent in October 2022.
However, economists forecast elevated inflation in the second half of the year, while the Bank of England (BoE) remains cautious about lowering the current 5.25 percent interest rate.
With monetary policy likely to remain tight, the CBI suggested that growth will come “squarely off the back of the private sector.”
“The defining challenge for the new government’s first 100 days will be to develop a credible plan to crowd in private sector investment and deliver sustainable growth,” the group added.
Whether led by the Conservatives, Labour, or another political party, business leaders want to see the new government “deliver a bold pitch to investors across the globe.”
Building Momentum
In the first 100 days of the new Parliament, lawmakers should “build momentum” and develop a long-term UK business tax roadmap, the CBI said. At its heart will be a simplified and digitised tax system.Elsewhere, the government should cut planning bureaucracy and boost labour market and productivity, the business manifesto said.
The CBI also said that Number 10 should drive a UK trade and investment strategy, which will cover at least five years. It will review exports, imports, as well as inward and outward investment, to allow the UK to compete and win globally.
The government should commit to not introducing any more sector-specific taxes and publish a new net zero investment plan as part of the first post-election fiscal event, the CBI recommended. This will help create more jobs linked to energy security and efficiency, the business group added.
It also highlighted the need to “unlock the power of UK regions” and align the industrial and trade strategy with regional mayors. This can be delivered via a new industry-partnered Mayoral Economic Compact, launching on July 17, according to the CBI.
According to the group, the southwest can benefit from price support to build on net zero technologies like offshore wind, hydrogen, and sustainable aviation fuels. The CBI urged the government to focus on upskilling the workforce in the Midlands and mitigating labour shortages in Wales.
It also called for support for high-growth tech and innovation firms in the northwest.
