CBI responds to Chancellor’s statement (May 2026)

Louise Hellem, CBI Chief Economist, said:

“With households continuing to feel the squeeze from elevated costs and ongoing global instability, the Chancellor’s instinct to shelter consumers is both understandable and welcome. While the measures outlined should provide a short-term boost to consumer confidence, businesses would welcome further engagement with government to develop longer-term solutions to tackle the underlying cost pressures facing the economy.

“The most sustainable way to protect households is to reduce the cost of doing business, strengthen UK competitiveness, and give firms the confidence to invest, hire and grow. That means faster action on business energy costs, a clearer plan to reduce regulatory friction, and practical delivery reforms that help firms get on with investing – rather than navigating delays and uncertainty.

“The Chancellor’s backing for our vital logistics industry is welcome. Delaying the fuel duty rise, introducing a road tax holiday for HGVs, and cutting the duty rate for red diesel will provide important support to a sector that underpins the wider economy.

“Proposals to update tax-free mileage rates would also represent a long overdue acknowledgement that the current system no longer reflects the real cost of business travel. This doesn’t just matter for firms; it impacts workers in sectors where using a personal vehicle is an essential part of the job.

“Support for chemicals and ceramics industries is also a key step as these foundational sectors are facing acute energy and competitiveness pressures. Businesses will want to see the detail quickly on eligibility, delivery, and whether it will be enough to protect investment and industrial capability.”