IoD press release Business will be looking for conditions that support investment and growth
Responding to the appointment of Andy Burnham and his first speech as the new Prime Minister of the UK, Jonathan Geldart, Director General of the Institute of Directors, said:
“The Institute of Directors welcomes the Prime Minister’s focus on an economic model aimed at spreading opportunity and growth more evenly across the country. Business leaders share the ambition of building a more resilient and prosperous economy, but success will depend on creating the conditions that enable firms to invest, innovate and grow with confidence. Maintaining a competitive and predictable tax environment will be essential if the UK is to attract the investment needed to deliver sustainable growth.
“Businesses will be encouraged by a willingness to examine how public spending can be better targeted. Given the pressure on the public finances, a sharper focus on value for money and outcomes is essential. The private sector stands ready to work with government to identify more effective ways of delivering infrastructure, public services and economic development. What matters is not simply how much is spent, but how effectively resources are allocated to support long-term prosperity.
“We agree that devolution can be a powerful driver of economic growth when it combines local flexibility with clear accountability. Local leaders are often best placed to identify barriers to growth and unlock economic potential, but devolved institutions must also be accountable for the outcomes they deliver. The success of devolution will depend not only on transferring powers and funding, but on ensuring transparent governance, clear responsibilities and effective scrutiny.
“We support the Prime Minister’s ambition to strengthen Britain’s industrial base. The UK’s industrial strategy is designed to provide long-term certainty for investors, support innovation and skills development, and create the conditions for businesses to grow and compete internationally. Within it, strategic public procurement is referenced for its ability to contribute to these objectives, particularly where it helps develop domestic capability, strengthen supply chains and encourage investment in the industries of the future. We welcome the opportunity to work with the government to ensure that a focussed industrial strategy delivers for British industry.
“The Prime Minister is right to identify the cost of living as a defining concern for households. However, the cost of living cannot be separated from the cost of doing business. Higher energy costs, employment costs, taxation and regulatory burdens ultimately feed through into prices, investment decisions and wage growth. Sustainable improvements in living standards require a policy environment that enables businesses to operate competitively, invest confidently and create well-paid jobs.
“We welcome a greater focus on accountability and long-term stewardship in essential services, such as the water sector. However, there is a risk in assuming that greater public ownership will, by itself, solve the industry’s problems. The central issue is the implementation of sound governance. Public utilities require boards, incentives and regulatory frameworks that promote investment, resilience and customer outcomes. As the IoD has argued previously, there may be scope for a new corporate model that better balances the interests of investors, customers and the public while continuing to attract private capital.
“As the government develops its 10-year plan for Britain, business leaders will be looking for a clear partnership with policymakers based on stability, predictability and a relentless focus on growth. The UK’s economic challenges are significant, but so too are its strengths. With the right conditions in place, business can play a central role in delivering the investment, innovation and prosperity that communities across the country need.”
