Business chiefs are warning the Chancellor she is risking death by a thousand taxes. They assert that growth, not taxes, is the only viable path to reverse Britain’s economic decline and caution BritPanorama of an impending financial crisis unless substantial spending cuts are enacted.
Rain Newton-Smith, director general of the Confederation of British Industry, is poised to address concerns about the upcoming Budget, emphasizing the need for a credible fiscal strategy. She argues that reliance on tax increases without accompanying growth measures is a flawed approach.
In her upcoming remarks, she states, “You will never be able to tax your way to growth,” underscoring that without a robust growth strategy, tax rises will fail. Her call to action is clear: “Growth, not taxes, is the only way out of decline. And that starts with business.”
Newton-Smith also expresses frustration over the uncertainty created by months of speculation regarding Budget measures, likening it to a repeated cycle of worry and inaction. She notes, “One year later, here we are again. A new fiscal gap, billions of pounds wide. More rumours, more U-turns, raising uncertainty. Business holding its breath again. Investment paused, projects on hold again.”
Meanwhile, Business Secretary Peter Kyle is expected to announce plans aimed at reducing energy costs for 7,000 UK businesses starting in April 2027, as part of an effort to bolster economic resilience.
Criticism extends beyond industry leaders; former Bank of England chief economist Andy Haldane has described the government’s fiscal policies as a “fiscal fandango” and warns of potential instability in financial markets. Haldane cautions that a quick descent into financial turmoil is a scenario to be avoided at all costs, indicating a pervasive anxiety about upcoming economic measures.
This growing concern reflects broader trepidations about the UK economy, with business leaders feeling the pressure to adapt in an environment marked by persistent instability and speculation.
As the Chancellor prepares to unveil the Budget, the imperative is clear: to foster an economic climate conducive to investment and growth, prioritizing stability over further punitive taxation.
In navigating the complexities of economic policy, the emphasis must be on fostering genuine growth while maintaining fiscal accountability. As stakeholders from various sectors voice their worries, the challenge remains to craft a Budget that inspires confidence, mitigates uncertainty, and lays the groundwork for a sustainable economic future.
