Labour's growth slogans must be backed by action, warns CBI
British business is calling on the Government to help get the 'flywheel of the economy turning' with concrete strategies and policies as official output figures are expected to show a difficult end to 2024.
Rupert Soames, chairman of the CBI business group, will say on Thursday that the Government's growth ambitions must be matched with action and that business confidence must be restored to spur on investment needed to support expansion.
At a CBI Midlands business dinner event in Birmingham, he will say: 'There is not a business leader I have spoken to who does not wish the Government well in its ambition.'
But he will add that slogans such as 'growth, growth, growth' must be backed by action on strategy and policy.
'To get growth going, we must get the flywheel of the economy turning,' he will say.
'Up and down the country businesses need to increase the rate of investment in growth, and they will only do that if they have confidence government policy will support them.
'In particular they need to see regulation such as planning become much more growth-friendly, and not to do anything to discourage employment,' he will say.
Figures for gross domestic product (GDP) from the Office for National Statistics on Thursday morning are set to reveal a downbeat final quarter for the economy.
The Bank of England warned last week that it expects GDP to contract by 0.1% in the fourth quarter of 2024, following zero growth in the previous three months.
This will leave annual GDP growth at a paltry 0.7%, according to analysts – far below initial forecasts from the start of the year.
It will likely reinforce fears over stagnation, which is a potent combination of zero growth and high inflation.
The Bank predicted last week that inflation would rise back up again and peak at a higher-than-expected 3.7% later in the summer.
Chancellor Rachel Reeves has made it her mission to see the economy grow, but there are fears that her move to hike national insurance contributions and the minimum wage will see businesses raise prices and slash jobs.
The CBI is urging the Government to work with British firms to help gain back their trust.
Mr Soames will say: 'The Budget may have worked to fill a hole in the public finances by significantly increasing taxes on business, but in filling one hole it has created another – in the confidence and trust of business… this is not conducive for encouraging businesses to invest.
'To restore business confidence, this government must make sure its policies… truly hang together in a way that makes sense for business.'
Economists fear that anaemic growth is set to continue throughout the first half of 2025.
Ellie Henderson, at Investec, said: 'We do not see a stark change of affairs in the immediate future, with only modest growth pencilled in for much of the first half of this year.'
But she said the Government's pro-growth agenda should help buoy activity.
She said: 'Should some of the reforms involved in this start to bear fruit, we could see a lift in economic optimism in the UK moving forward.
'And even if it takes time to complete some of the longer-term projects, the investment that is needed to deliver them will add to growth in the interim.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Argus
6 minutes ago
- South Wales Argus
Rayner faces Labour backbench call to ‘smash' existing housebuilding model
Labour's Chris Hinchliff has proposed a suite of changes to the Government's flagship Planning and Infrastructure Bill, part of his party's drive to build 1.5 million homes in England by 2029. Mr Hinchliff has proposed arming town halls with the power to block developers' housebuilding plans, if they have failed to finish their previous projects. He has also suggested housebuilding objectors should be able to appeal against green-lit large developments, if they are not on sites which a council has set aside for building, and put forward a new duty for authorities to protect chalk streams from 'pollution, abstraction, encroachment and other forms of environmental damage'. Deputy Prime Minister and Housing Secretary Angela Rayner is fronting the Government's plans for 1.5 million new homes by 2029 (Jordan Pettitt/PA) Mr Hinchliff has told the PA news agency he does not 'want to rebel' but said he would be prepared to trigger a vote over his proposals. He added his ambition was for 'a progressive alternative to our planning system and the developer-led profit-motivated model that we have at the moment'. The North East Hertfordshire MP said: 'Frankly, to deliver the genuinely affordable housing that we need for communities like those I represent, we just have to smash that model. 'So, what I'm setting out is a set of proposals that would focus on delivering the genuinely affordable homes that we need, empowering local communities and councils to have a driving say over what happens in the local area, and also securing genuine protection for the environment going forwards.' Mr Hinchliff warned that the current system results in 'speculative' applications on land which falls outside of councils' local housebuilding strategies, 'putting significant pressure on inadequate local infrastructure'. In his constituency, which lies between London and Cambridge, 'the properties that are being built are not there to meet local need', Mr Hinchliff said, but were instead 'there to be sold for the maximum profit the developer can make'. Asked whether his proposals chimed with the first of Labour's five 'missions' at last year's general election – 'growth' – he replied: 'If we want to have the key workers that our communities need – the nurses, the social care workers, the bus drivers, the posties – they need to have genuinely affordable homes. 'You can't have that thriving economy without the workforce there, but at the moment, the housing that we are delivering is not likely to be affordable for those sorts of roles. 'It's effectively turning the towns into commuter dormitories rather than having thriving local economies, so for me, yes, it is about supporting the local economy.' Mr Hinchliff warned that the 'bottleneck' which slows housebuilding 'is not process, it's profit'. The developer-led housing model is broken. It has failed to deliver affordable homes. Torching environmental safeguards won't fix it—the bottleneck isn't just process, it's profit. We need a progressive alternative: mass council house building in sustainable communities. — Chris Hinchliff MP (@CHinchliffMP) June 6, 2025 Ms Rayner, the Deputy Prime Minister and Housing Secretary, is fronting the Government's plans for 1.5 million new homes by 2029. Among the proposed reforms is a power for ministers to decide which schemes should come before councillors, and which should be delegated to local authority staff, so that committees can 'focus their resources on complex or contentious development where local democratic oversight is required'. Natural England will also be able to draft 'environmental delivery plans (EDPs)' and acquire land compulsorily to bolster conservation efforts. Mr Hinchliff has suggested these EDPs must come with a timeline for their implementation, and that developers should improve the conservation status of any environmental features before causing 'damage' – a proposal which has support from at least 43 cross-party MP backers. MPs will spend two days debating the Bill on Monday and Tuesday. Chris Curtis, the Labour MP for Milton Keynes North, warned that some of Mr Hinchliff's proposals 'if enacted, would deepen our housing crisis and push more families into poverty'. He said: 'I won't stand by and watch more children in the country end up struggling in temporary accommodation to appease pressure groups. No Labour MP should. 'It's morally reprehensible to play games with this issue. 'These amendments should be withdrawn.'
Western Telegraph
20 minutes ago
- Western Telegraph
Rayner faces Labour backbench call to ‘smash' existing housebuilding model
Labour's Chris Hinchliff has proposed a suite of changes to the Government's flagship Planning and Infrastructure Bill, part of his party's drive to build 1.5 million homes in England by 2029. Mr Hinchliff has proposed arming town halls with the power to block developers' housebuilding plans, if they have failed to finish their previous projects. He has also suggested housebuilding objectors should be able to appeal against green-lit large developments, if they are not on sites which a council has set aside for building, and put forward a new duty for authorities to protect chalk streams from 'pollution, abstraction, encroachment and other forms of environmental damage'. Deputy Prime Minister and Housing Secretary Angela Rayner is fronting the Government's plans for 1.5 million new homes by 2029 (Jordan Pettitt/PA) Mr Hinchliff has told the PA news agency he does not 'want to rebel' but said he would be prepared to trigger a vote over his proposals. He added his ambition was for 'a progressive alternative to our planning system and the developer-led profit-motivated model that we have at the moment'. The North East Hertfordshire MP said: 'Frankly, to deliver the genuinely affordable housing that we need for communities like those I represent, we just have to smash that model. 'So, what I'm setting out is a set of proposals that would focus on delivering the genuinely affordable homes that we need, empowering local communities and councils to have a driving say over what happens in the local area, and also securing genuine protection for the environment going forwards.' Mr Hinchliff warned that the current system results in 'speculative' applications on land which falls outside of councils' local housebuilding strategies, 'putting significant pressure on inadequate local infrastructure'. You can't have that thriving economy without the workforce there, but at the moment, the housing that we are delivering is not likely to be affordable for those sorts of roles. It's effectively turning the towns into commuter dormitories Labour MP Chris Hinchliff In his constituency, which lies between London and Cambridge, 'the properties that are being built are not there to meet local need', Mr Hinchliff said, but were instead 'there to be sold for the maximum profit the developer can make'. Asked whether his proposals chimed with the first of Labour's five 'missions' at last year's general election – 'growth' – he replied: 'If we want to have the key workers that our communities need – the nurses, the social care workers, the bus drivers, the posties – they need to have genuinely affordable homes. 'You can't have that thriving economy without the workforce there, but at the moment, the housing that we are delivering is not likely to be affordable for those sorts of roles. 'It's effectively turning the towns into commuter dormitories rather than having thriving local economies, so for me, yes, it is about supporting the local economy.' Mr Hinchliff warned that the 'bottleneck' which slows housebuilding 'is not process, it's profit'. The developer-led housing model is broken. It has failed to deliver affordable homes. Torching environmental safeguards won't fix it—the bottleneck isn't just process, it's profit. We need a progressive alternative: mass council house building in sustainable communities. — Chris Hinchliff MP (@CHinchliffMP) June 6, 2025 Ms Rayner, the Deputy Prime Minister and Housing Secretary, is fronting the Government's plans for 1.5 million new homes by 2029. Among the proposed reforms is a power for ministers to decide which schemes should come before councillors, and which should be delegated to local authority staff, so that committees can 'focus their resources on complex or contentious development where local democratic oversight is required'. Natural England will also be able to draft 'environmental delivery plans (EDPs)' and acquire land compulsorily to bolster conservation efforts. Mr Hinchliff has suggested these EDPs must come with a timeline for their implementation, and that developers should improve the conservation status of any environmental features before causing 'damage' – a proposal which has support from at least 43 cross-party MP backers. MPs will spend two days debating the Bill on Monday and Tuesday. I won't stand by and watch more children in the country end up struggling in temporary accommodation to appease pressure groups ... It's morally reprehensible to play games with this issue. These amendments should be withdrawn Labour MP Chris Curtis Chris Curtis, the Labour MP for Milton Keynes North, warned that some of Mr Hinchliff's proposals 'if enacted, would deepen our housing crisis and push more families into poverty'. He said: 'I won't stand by and watch more children in the country end up struggling in temporary accommodation to appease pressure groups. No Labour MP should. 'It's morally reprehensible to play games with this issue. 'These amendments should be withdrawn.'
Business News Wales
23 minutes ago
- Business News Wales
Combinable Crops Review Targets Fairer Returns for Farmers
Combinable Crops Review Targets Fairer Returns for Farmers A new UK Government review aims to tackle unfair practices in the combinable crops supply chain. Combinable crops, such as cereals (like wheat and barley), oilseeds, and pulses, are harvested using a combine harvester. They provide essential ingredients for food, animal feed and fuel. Environment Secretary Steve Reed said: 'British growers work incredibly hard to produce world-class food, and deserve fair, transparent contracts that reflect that. 'This review is a major step forward in giving arable farmers a stronger voice, better protection and fairer returns for the food they produce. 'We're proud of the vital work farmers undertake every day to feed our nation, which is why we're investing £5 billion – the largest ever budget for sustainable farming.' The UK Government has appointed former NFU president Baroness Minette Batters to lead reforms. It says that it will collaborate with devolved governments in a bid to develop a fairer, more transparent supply chain. A formal public consultation will be launched, giving farmers and other stakeholders the chance to share their experiences.
