Call for Budget to deliver clear message in potential growth

Ahead of the Autumn Budget, the Institute of Directors has written to the Chancellor of the Exchequer summarising the policy changes that it believes would have the greatest positive impact on the rate of sustainable economic growth in the UK.

In its Budget submission, the IoD has set out key recommendations for the Chancellor in the following areas:

• Fiscal rules that protect investment spending
• A business tax roadmap that supports business confidence and planning
• Improving the UK’s labour market to address skill and labour shortages
• Improve the UK’s trade performance
• Support SMEs in the transition to net zero

Commenting on the submission, IoD Director General Jonathan Geldart said “The most important priority for the UK and for this Budget is to deliver a clear message and framework for increasing the UK’s potential growth. This is the key to delivering a higher standard of living for all.

“The weakness in the UK economy is perhaps unsurprising given the cluster of shocks from recent years. But this unfortunately leaves us with public spending and taxation at post-war highs as a percentage of GDP. The sustainability of the public finances is rightly a key priority but we need to shift the focus away from short-term budget management to creating the stable, light-touch long-term policy framework which is desperately needed to get behind stronger growth.

“A combination of fiscal rules which accommodate borrowing for the purposes of investment, reforms to the government’s fiscal strategy, a tax roadmap and an industrial strategy, will help deliver that long-term certainty that can draw in vital investment.”