CBI boss Rain Newton-Smith has dire predictions about the future of the economy unless Rachel Reeves changes her plans for Wednesday’s doom-laden budget
Rachel Reeves must “change course” and stop hammering UK firms in Wednesday’s crunch budget, a business leader will urge today.
CBI chief Rain Newton-Smith will tell ministers and company bosses that firms fear the UK could “risk getting locked in a stop-start economy”.
The boss of the UK’s largest business group is also set to demand that chancellor Reeves makes “hard choices” and avoid “death by a thousand taxes” in her speech at the CBI’s annual conference in London.
Ms Newton-Smith will also say: “Right now, we have a government who say they want growth. Well business wants growth too.
“And the truth is – only business can deliver it. But to do that, we need one thing from this government and we need it now – stability.”
It comes as the trade body boss called for action on business energy costs and the Employment Rights Bill. Measures linked to the Bill, like day one paternity leave and changes to statutory sick leave, are due to come into force next April.
And further laws, such as banning unfair zero hours contracts, are set to begin in 2027.
But Newton-Smith branded the Bill “damaging” and called for a change in course from the government.
Meanwhile, ex-Bank of England chief economist Andy Haldane claimed the “fiscal fandango” of the past few months had caused “paralysis” among businesses and shoppers.
He told the BBC: “We have had month upon month of speculation – fiscal fandango.
“That has been costly for the economy. It’s caused paralysis among businesses and consumers. It’s the single biggest reason growth has flatlined in the second half of the year.
“We need a decisive action that puts to bed and beyond reproach any notion of further tax rises.”
Elsewhere, Unite union chief Sharon Graham urged Reeves to “be Labour” and launch a wealth tax and overhaul fiscal rules so the government can borrow to invest.
She added: “They need to do a wealth tax, because everyday people cannot pay any more.”
Meanwhile, transport secretary Heidi Alexander defended the pre-Budget changes after Reeves axed expected plans to hike income tax rates.
Alexander said: “The review that the Office for Budget Responsibility have done about the productivity forecasts has meant that this whole process has really taken place on shifting sands to start off with, and we’ve got a very challenging global economic environment.”
It comes after speaker of the House Lindsay Hoyle blasted the “hokey cokey” Budget and called out ministers for leaking key information ahead of the Chancellor’s statement on Wednesday.
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