Chancellor Rachel Reeves must use the Autumn Budget to make the bold decisions necessary to get the economy firing, says the Confederation of British Industry (CBI).
In its Budget submission, the business group says that businesses will judge the Budget a success or failure based on its ability to inject immediate momentum into a stuttering economy.
Ms Reeves will need to give both firms and consumers confidence that the government is prioritising long-term prosperity over short-term thinking in the Budget.
The Chancellor should be prepared to challenge party orthodoxy and take difficult decisions to deliver the long-term stability and growth the country needs, adds the CBI.
Rain Newton-Smith, CBI Chief Executive, said:
“The government deserves huge credit for recognising the challenges faced by the economy and for showing determination to chart a course towards renewal that prioritises both public and private investment.
But the goal of a growing economy that raises living standards across the board won’t be achieved until real fiscal headroom is created and the cycle of short-term thinking that’s holding the country back is broken.
Yearly tinkering to close an ever-increasing fiscal gap simply isn’t a viable approach to a challenge this big.
We need to take tough decisions now or risk a downward spiral that sees us robbing Peter to pay Paul just to fund normal government expenditure and puts our growth prospects in peril. Short-term thinking leads to long-term decline, let’s not make that a political choice we live to regret.”
Internet link: CBI website
