A mere month away from Rachel Reeves’ first Budget, the Chancellor of the Exchequer outlined some of the new government’s plans for industry at the Labour Party Conference currently taking place in Liverpool. Promising the UK will not return to austerity measures, Reeves promised the budget to be one of, “ambition and to fix the UK’s foundations, deliver change and rebuild Britain.”
A key part of this will of course be a clear industrial strategy. Commenting on the Chancellor’s speech, Stephen Phipson, Chief Executive of Make UK, said: “Industry will welcome the Chancellor’s commitment to a vision for the economy which has a long-term industrial strategy at its heart. The UK has long been an outlier in not having one and, amid an ever more competitive global economic landscape, it is a vital piece in the jigsaw of future economic growth.
“We have many world class industrial sectors in the UK, together with an academic and research base which is the envy of our competitors. If we can harness these advantages, the prize of sustainable growth and meeting the great challenge of transitioning our economy can be met. Having made this commitment, it is now vital that government moves without delay to firm up the details of a strategy that industry can buy into and, which will pull the levers of both domestic and international investment.”
Rain Newton-Smith, CBI CEO, said: “The Chancellor hit the right notes in a speech that balanced the need for fiscal responsibility with an optimistic pitch to investors about the strengths of the UK economy. Businesses will be further reassured to hear that while the government won’t duck difficult decisions, they will be taken in the context of a return to long-term sustainable growth.
“Building capacity back into the economy, publishing a new industrial strategy, and reforming business rates will all give investors confidence that the UK is open for business. While stability in terms of the government’s tax plans – particularly around headline corporation tax – will help to deliver a dose of the certainty that businesses crave.”
There were, however, some words of warning from elsewhere in the sector. Nimisha Raja MBE, Founder of Nim’s, a leading manufacturer of air-dried fruit and vegetable crisps,drink garnishes, botanicals, ingredients and edible teas, added: “The fundamental principle for any business, or indeed government, is to address problems head-on without dwelling on them. It’s crucial to focus on solutions, rather than getting stuck in the past or assigning blame.
“Rachel Reeves has been consistently complaining about the so-called ‘black hole’ in the economy, spreading a sense of doom and gloom. This narrative, together with rumours of potential tax hikes impacting both small and large enterprises, is not filling business owners with joy and hope!
“Amidst this persistent negativity, we, as bosses, are once again pausing our growth plans and waiting for the October Budget. If Labour wants to gain the confidence of the business community, it needs to understand the first rule of business… work with the circumstances you inherit or the cards you are dealt with.
“We have been playing jiggery-pokery with finances to get through the last few years and now we are waiting at the table to see what cards the October Budget will deal us. Will it fulfil the promise of being a Budget for investment? Is it going to ensure small businesses aren’t left out in the cold whilst the behemoths are given headline grabbing grants to keep going or stop leaving the UK?
“The Industrial Strategy is extremely important, especially if we can get it right and it takes a long-term, cross party approach. However, it must not overlook the needs of small business and there must be some early wins to give us back the confidence we need to invest and create jobs.”
Rowan Crozier, CEO of Brandauer, one of the UK’s leading independent presswork and tooling specialists, said: “An industrial strategy is long overdue and absolutely critical for sectors that are going to drive the UK’s future. It’s something that manufacturers have been crying out for and the Chancellor’s focus on it in her keynote speech is a welcome first step forward.
“We’d all welcome more detail and a vision of what is involved before the budget, which is still five weeks away. The country is seeing severe constipation over investment decisions due to the current negativity the government is pushing and the uncertainty this creates.
“While our business is booming with lots of new opportunities, there are others out there that could do with some positive news before it is too late. If I could give one bit of advice to the Chancellor, she should put the draft copy of the Make UK industrial strategy at the heart of her approach.”
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