Business leaders in the UK are urging the next government to prioritize economic growth and business investments within the first 100 days of Parliament. The Confederation of British Industry (CBI) has outlined its immediate priorities for the new government in its Business Manifesto, which was developed through discussions with over 400 business leaders and 70 trade associations.
One of the key priorities highlighted by the CBI is the need to revitalize “Brand Britain” and develop a cutting-edge trade and investment strategy. CBI Chief Executive Rain Newton-Smith emphasized the importance of sharpening the investor pitch for the UK and ensuring that it is at the forefront of global investment opportunities. This can be achieved by focusing on tax, planning, and the labor market, which are considered the “big three” enablers for business growth.
Over the past five years, the UK economy has been more focused on shock absorption rather than boosting growth, according to the CBI. As a result, the economy has faced turbulent conditions, characterized by high levels of inflation and interest rates. Although the inflation rate dropped to 2.3 percent in April from its peak of 11.1 percent in October 2022, economists predict that inflation will remain elevated in the second half of the year. The Bank of England (BoE) is also cautious about lowering the current interest rate of 5.25 percent.
Given these circumstances, the CBI believes that sustainable growth will come primarily from the private sector. The new government, regardless of its political affiliation, must develop a credible plan to attract private sector investment and foster long-term growth. Business leaders are calling for a bold pitch to global investors and a restoration of UK competitiveness.
To achieve these goals, the CBI recommends that lawmakers focus on building momentum within the first 100 days of the new Parliament. This includes developing a long-term UK business tax roadmap that simplifies and digitizes the tax system. The government should also reduce planning bureaucracy, boost the labor market, and improve productivity. Furthermore, the CBI emphasizes the importance of a comprehensive UK trade and investment strategy that covers a minimum of five years. This strategy should review exports, imports, and inward and outward investment to ensure that the UK remains competitive on a global scale.
The CBI also calls on the government to avoid introducing any more sector-specific taxes, publish a new net zero investment plan, and support regional development. It highlights the potential of the southwest for net zero technologies like offshore wind, hydrogen, and sustainable aviation fuels. The Midlands would benefit from upskilling the workforce, while labor shortages in Wales need to be addressed. The northwest should receive support for high-growth tech and innovation firms.
Overall, the CBI’s Business Manifesto provides a comprehensive roadmap for the next government to strengthen Brand Britain, attract investment, and drive economic growth. By prioritizing tax reform, reducing bureaucracy, and supporting regional development, the UK can position itself as a global leader in trade and innovation. These measures will not only benefit businesses but also create more jobs and contribute to the country’s long-term prosperity.
