IoD Press Release IoD welcomes Chancellor’s warm words and recognition of the cost of business
Responding to recent comments made by the new Chancellor of the Exchequer, as well as the announcement of a 20% cut in business rates for pubs, clubs and live music venues in England, Anna Leach, Chief Economist at the Institute of Directors, said:
“The Chancellor is right to recognise both the vital role that businesses play in creating jobs, driving investment and delivering the growth the UK economy needs, and the pressures many firms are facing from the rising cost of doing business.
“Businesses are a force for good in society. As well as driving growth and employment, they support community wellbeing, foster local pride and help create places where people want to live, work and invest. Measures that strengthen the sustainability of businesses can therefore deliver benefits far beyond the balance sheet.
“The government has come into office with a welcome commitment to work in partnership with business, providing stability, unlocking investment and putting growth at the heart of policymaking. Businesses will welcome the Chancellor’s warm words. However, firms ultimately judge governments not by rhetoric, but by the conditions they create for investment, hiring and growth.
“While targeted support for hospitality and entertainment venues is also welcome, it should be part of a broader programme of business rates reform. The current system continues to place a disproportionate burden on many bricks and mortar businesses, and greater certainty is needed to encourage long-term investment in our high streets and town centres.
“More broadly, at a time when costs remain high and confidence remains fragile, businesses need certainty, a competitive tax environment, proportionate regulation and a clear long-term growth strategy. The challenge now is to turn positive rhetoric into consistent policy delivery. If government can provide the stability and certainty that businesses need, firms across the country will be prepared to invest, innovate, hire and help drive sustainable economic growth. But where policy decisions increase costs or create uncertainty, they risk undermining the very investment and growth that ministers want to see.
“Business wants to be a partner in delivering growth. The opportunity for government is to match its supportive language with policies that strengthen competitiveness, unlock investment and give companies the confidence to invest for the long term.”
About the author
Anna Leach is a well-known UK economist, who appears regularly in the broadcast and business media. She has over 20 years of experience in a variety of macroeconomic and policy roles in business organisations and the civil service.
Prior to joining the IoD in 2024, Anna was Deputy Chief Economist at the Confederation of British Industry (CBI), where she was responsible for macroeconomic analysis, business surveys (economic, policy and commercial) and economic consulting.
Earlier in her career, Anna was a member of the Government Economic Service, where she undertook policy roles at the Department for Work and Pensions, looking at labour market issues, and in the HM Treasury economic analysis team. Anna has an MSc and a BSc from the University of Warwick, both in Economics.
