Call for Chancellor to restore business confidence in Autumn Budget

The Institute of Directors is calling on the Chancellor to focus on restoring business confidence in his next budget, encouraging private investment and creating the conditions for stronger long-term economic growth. The IoD argues that while the UK economy has delivered stronger growth than many comparable advanced economies in recent years, persistent weaknesses in investment, productivity and business confidence risk undermining future prosperity.

The submission identifies five priority areas where the Budget can help strengthen the UK’s growth prospects; this includes creating a competitive and predictable tax environment. It is also asking to mitigate the employment and investment consequences of the Employment Rights Act, as well as sequence devolution to support productivity across the UK.

The call expands to protection and deliver economically productive infrastructure and an acceleration of responsible AI adoption across the business population

Anna Leach, Chief Economist at the Institute of Directors, said “The UK has achieved respectable headline growth in recent years, but the fundamental challenge facing the economy remains unchanged: we do not invest enough. Business leaders consistently tell us that uncertainty, rising costs and doubts about policy delivery are holding back investment decisions.

“This Budget must restore confidence and provide a clear signal that the UK is committed to being one of the most attractive places in the world to invest, grow a business and create jobs. With fiscal headroom limited, the UK’s growth challenge cannot be solved by public spending alone: government must create the conditions for businesses to invest. That means no further increases to the overall tax burden on businesses, investors and employment, alongside greater policy stability, proportionate regulation, effective infrastructure delivery, well-sequenced devolution and wider responsible adoption of AI – all focused on raising productivity, crowding in private capital and improving living standards.

“The overriding test for this Budget is whether it helps move businesses from postponing investment to pursuing growth. If the government can rebuild confidence and demonstrate clear delivery, the private sector can play its full role in driving the next phase of economic growth.”