CBI responds to announcement of new Chancellor of the Exchequer

Louise Hellem, CBI Chief Economist, said: 

“Congratulations to John Healey on his appointment as Chancellor.  

“Business will be conscious that whilst there is now a new occupant at No. 11 Downing Street, the same challenges to unlock growth remain. Maintaining business and investor confidence will be critical to delivering the growth needed to raise living standards and strengthen prosperity across the UK.

“That means staying committed to established fiscal rules, protecting capital investment, progressing the EU-UK reset and retaining a single fiscal event each year. At the same time, we must move quickly to accelerate key Industrial and Infrastructure Strategy commitments and deliver the Mansion House reforms.

“High energy costs and rising employment costs continue to act as a brake on growth, and we encourage the new administration to engage with the CBI’s proposals to tackle these issues. Firms will also be looking for a review of the tax and regulatory system to ensure that it rewards investment and growth, rather than simply mounts further costs on hard-pressed businesses. The acid test for every major economic decision in the months ahead should be simple: will it make it easier for businesses to invest, hire, innovate and grow?

“Ultimately, tackling the cost-of-living crisis goes hand in hand with tackling the cost of doing business. If the government wants higher employment, lower inactivity and stronger public finances, it must create the conditions that give firms confidence to invest, expand and create jobs.”