BCC urges bold Autumn Budget to boost UK competitiveness

The Autumn Budget must sharpen the UK’s competitive edge to stay ahead of the pack in an increasingly dog-eat-dog world, the British Chambers of Commerce (BCC) has said.

The BCC called for immediate action to cut costs deterring investment, simplify regulations to unleash business potential, and update the country’s strategic offer.

Among the recommendations in a new report, the BCC urged ministers to commit to no further increases in taxes that add to labour costs; axe the windfall tax on oil and gas to address energy costs for businesses and provide a clear strategy for the North Sea’s transition to a renewable future; prioritise further infrastructure investment to support growth; and boost economic diplomacy to unlock the full potential of ‘Brand Britain’.

The report, produced by the BCC’s Global Britain Challenge Group, draws on expertise from businesses, academics, and think tanks. It highlights how the UK has fallen in global competitiveness rankings from the ninth-most competitive nation in 1997 to twenty-ninth today.

“If the UK economy is not competitive then it cannot grow. Our slide down the rankings has been driven by increasing volatility on tax and regulation which has led to an inexorable rise in the cost of doing business. There is also growing speculation about what’s coming in the Autumn Budget, which is still weeks away. But the Budget can be the decisive moment we need to back British business and put the economy on the front foot,” said Shevaun Haviland, director general of the British Chambers of Commerce.

This decline comes at a time when international trade has been upended, and geopolitical upheaval is prompting nations to reassess their strategic business alliances. Against this background, the BCC stressed that it is more important than ever for the UK to stand out from the crowd.

With more than forty recommendations in total, the report also calls for a revamp of business rates, a moratorium on new corporate reporting standards that could impact the UK’s investment appeal, and an annual audit of the country’s competitiveness.

“The UK is bursting at the seams with innovative ‘can-do’ businesses, that are eager to grow and make the most of the UK’s extraordinary talent, creativity and technical expertise.  Adopting even a few of this report’s recommendations will make a positive difference but delivering all of them would power the economic growth our people and businesses deserve,” Haviland added.

ALCHEMPro News Desk (HU)