Shevaun Haviland, director general of the British Chambers of Commerce (BCC), will on Thursday warn that the next prime minister and chancellor must ease burdens on businesses to ensure the UK economy prospers. In a speech at the BCC's global annual conference on June 25, she will argue that successive governments have “hobbled” business prospects over recent years.
Leadership race heats up
The conference comes around two weeks before nominations open to replace Sir Keir Starmer. Current Chancellor Rachel Reeves, widely predicted to be replaced if Andy Burnham becomes prime minister, is also due to speak at the event. Burnham is currently the only candidate to have openly declared his leadership ambitions.
Call to resist further cost increases
Ms Haviland will call on the next prime minister to resist further cost increases for firms. Businesses have faced rises in national insurance contributions, the national minimum wage, and other taxes such as the packaging levy introduced earlier this year. She is set to say: “At a time of huge economic shocks and global headwinds, successive UK governments have chosen to pile more and more cost on companies. That is no way to run an economy.”
“So, if we want to see growth - our political leaders must reduce the burdens on business. Taxing businesses more, would be a road to ruin,” she will add.
Growth challenges persist
In her speech, Ms Haviland will also tell firms and industry leaders that improved business confidence is needed to help drive economic growth. Chancellor Reeves has made stronger economic growth a key ambition for the Government, but it has come under pressure amid weak consumer confidence and global economic uncertainty. Most recent data showed the economy contracted by 0.1% in April, with signs that the conflict in the Middle East was impacting some UK sectors.
She said: “The difficult truth is, whoever leads the UK, the primary challenge remains the same – delivering growth. Outside of the pandemic rebound, UK growth has flatlined year after year. And this economic malaise is nothing new or attributable to the policies of a single government. Despite all our strengths, we are failing to fulfil our potential.”
