Confederation of British Industry calls for policy overhaul to spark UK growth

Rain Newton-Smith, Director-General of the Confederation of British Industry (CBI), delivered a powerful message to the Government at the CBI conference, emphasising the urgent need for cohesive policies to enable businesses to drive economic growth. Addressing a packed audience, she praised business leaders as the “engine of growth” but warned that conflicting government measures are stifling investment and long-term planning.

Stability Without Strategy

Newton-Smith acknowledged the Government’s efforts to restore economic stability after a turbulent decade, dubbing it the “dullness dividend.” However, she stressed that stability alone is insufficient, describing it as a “precondition, not a blueprint” for sustainable growth.

With Office for Budget Responsibility (OBR) forecasts showing just 1.5% growth by the end of the current Parliament, Newton-Smith argued that achieving the Government’s vision of economic expansion requires bold action. “The missing piece—the steel that holds the whole bridge up—is investment,” she said, calling on policymakers to enable businesses to take risks and expand.

Tax and Policy Burdens Undermine Business Confidence

Newton-Smith criticised the recent Budget for creating financial and operational burdens that hinder business growth. She cited the rise in National Insurance Contributions (NICs), increased National Living Wage thresholds, and impending Employment Rights Bill as measures that have left companies “in damage control.”

“These pressures have forced firms—especially in retail, hospitality, and farming—into crisis containment,” she said, noting that many businesses are cutting training, delaying net-zero projects, or passing costs onto consumers.

Farming and family businesses face additional challenges, with changes to inheritance tax and business property relief threatening their ability to invest and pass operations to future generations. “When you hit profits, you hit competitiveness, you hit investment, and you hit growth,” Newton-Smith warned.

A Call for Bold Partnerships

Newton-Smith urged the Government to adopt a “whole systems approach” to growth, including reforms in business rates, workforce health, and skills training. She proposed a collaborative “Blueprint for Competitiveness,” emphasizing partnerships between public and private sectors to modernize industrial strategy and drive resilience.

She also stressed the need for regulatory reforms, simpler tax systems, and expanded tech adoption to unlock £45 billion in economic potential.

“Growth is existential,” Newton-Smith concluded. “With the ideas and energy of business, we can build one hell of a bridge to get there.”

The CBI’s call to action places the onus on policymakers to align their strategies and empower businesses to lead the UK’s economic recovery.