CBI responds to Prime Minister's speech at Labour Party Conference 2026

Rain Newton-Smith, CBI Chief Executive, said:

“The Prime Minister has painted a vision in the boldest of primary colours for the transformation he wants to unlock for the country – one with a stronger role for the state, but ultimately dependent on private sector investment and delivery.

“Key to making this partnership a success will be recognising what business brings to the table – its expertise, innovation and, most crucially, the investment needed to turn ambition into growth. Public investment should be designed to crowd in, rather than crowd out, private capital.

“Government is about choices, and the Prime Minister deserves credit for being willing to confront difficult questions about the long-term sustainability of the state pension in order to tackle the challenge of social care. Business will welcome an honest conversation about the trade-offs needed to deliver lasting reform. The same ambition must be brought to tackling youth unemployment where delivering on Milburn’s recommendations will depend on creating the conditions for businesses to grow, invest and create the jobs young people need.

“Just as important is the recognition that transforming the state cannot come at the expense of sound public finances. Fiscal credibility matters. The Prime Minister’s commitment to discipline should reassure markets that reform will be pursued alongside stable and sustainable public finances.

“Pragmatism on the North Sea is a welcome signal, while the detail of GB Grid should now be developed with business, with a clear test: does it accelerate connections and unlock, rather than displace, the private investment needed to deliver them.

“British firms are competing for investment in an increasingly challenging global environment. A more ambitious economic partnership with the EU that removes practical barriers to trade, improves market access and strengthens cooperation can deliver tangible gains for growth on both sides.

“The model of growth developed in Manchester – bringing government and business together around a shared plan for investment and delivery – is one businesses across the country can get behind. The Budget now needs to provide the first downpayment on that partnership. That means giving firms breathing space from the cumulative cost pressures holding back investment and hiring, so they have the confidence and capacity to raise living standards and deliver growth in every postcode.”