IoD press release Budget policies fail to lift the UK’s growth prospects
Responding to the Autumn Budget Statement delivered by the Chancellor of the Exchequer, Anna Leach, Chief Economist of the Institute of Directors, said:
“Whilst this Budget further increases the tax burden on business, it is partially offset by some helpful measures.
“We welcome the funding for the Youth Guarantee and the full funding of SME apprenticeships for those eligible under 25, which will support young people in their careers. The decision not to converge the two rates of Landfill Tax will also be a relief to the construction sector.
“We also welcome the more than doubling of the headroom against the fiscal rules. This will help calm the frenzy of speculation which has surrounded fiscal events. The decision to only assess performance against the fiscal rules once a year may also contribute to greater stability in policy making. But the leaking of policy choices in the run-up to this Budget is of grave concern. It has contributed to substantial declines in business and consumer confidence, with real impacts on economic activity.
“This Budget does not substantively change the UK’s growth outlook, however – the OBR judge that none of the policies announced have a material impact on GDP. Public spending is higher, and business investment even lower than before. The scaling back of National Insurance relief on pension contributions – even while the government has launched its Pension Commission – will undermine retirement savings and the very investment pools that we need, as well as heaping further costs on employment.”
