The Confederation of British Industry (CBI) warns of potential profit reductions due to the recent Budget.
- Rain Newton-Smith, CEO of the CBI, addressed business leaders on the Budget’s implications.
- Key issues include business rates reform and changes in National Insurance contributions.
- The CBI urges the government to enhance competitiveness through public-private partnerships.
- Retail sector leaders express concerns about the broader economic effects of the Budget.
Rain Newton-Smith, the CEO of the Confederation of British Industry, has highlighted serious potential challenges for businesses following the recent Budget. She emphasised that profit margins are expected to decrease, impacting the financial performance of numerous companies. In her speech, Newton-Smith commended the government for fostering stability but insisted on the need for further reforms to address ongoing economic challenges.
In her address at the CBI Annual Conference, Newton-Smith called for an accelerated reform of business rates and greater flexibility regarding the apprenticeship levy. She also advocated for enhanced incentives to support workforce health. Her speech underscored the necessity of transforming economic challenges into opportunities through strategic public-private collaborations.
The CBI’s stance is clear: businesses need confidence and certainty to thrive in the long term. Newton-Smith urged the government to remain bold in policy-making, creating fiscal space for capital investment while maintaining public financial stability. She acknowledged some positive steps taken by the Chancellor but advocated for a detailed corporate tax roadmap.
An urgent call was made by nearly 80 retail industry leaders, who, in a letter organised by the British Retail Consortium, expressed their concern about the economic impact of the Budget, particularly on inflation, employment, and investment. This coalition of voices from the retail sector stressed that recent changes, including the increase in National Insurance contributions for employers from 13.8% to 15%, could lead to additional costs of up to £7 billion annually.
Rachel Reeves, during the Budget, justified the National Insurance hike, recognising it as a tough decision, yet crucial for financial management. The discussion reflects a significant discourse on balancing fiscal responsibility with economic growth, focusing on its impacts stretching across the retail sector.
The CBI and industry leaders urge the government to implement strategic measures that balance fiscal responsibility with sustainable economic growth.
