IoD Autumn Budget submission: restore business confidence

The Institute of Directors has set out five priorities for the Autumn Budget on 28 October, calling on Chancellor John Healey to restore business confidence and encourage private investment. In its submission, the IoD warns against further increases in taxes on business, investment and employment.

The IoD says the UK economy has delivered stronger growth than many comparable advanced economies in recent years, but argues that persistent weaknesses in investment, productivity and business confidence risk undermining future prosperity.

The five areas are creating a competitive and predictable tax environment, mitigating the employment and investment consequences of the Employment Rights Act, sequencing devolution to support productivity across the UK, protecting and delivering economically productive infrastructure, and accelerating responsible AI adoption across the business population.

Anna Leach, chief economist at the IoD, said: “The UK has achieved respectable headline growth in recent years, but the fundamental challenge facing the economy remains unchanged: we do not invest enough. Business leaders consistently tell us that uncertainty, rising costs and doubts about policy delivery are holding back investment decisions.”

She added: “This Budget must restore confidence and provide a clear signal that the UK is committed to being one of the most attractive places in the world to invest, grow a business and create jobs. With fiscal headroom limited, the UK’s growth challenge cannot be solved by public spending alone: government must create the conditions for businesses to invest. That means no further increases to the overall tax burden on businesses, investors and employment, alongside greater policy stability, proportionate regulation, effective infrastructure delivery, well-sequenced devolution and wider responsible adoption of AI, all focused on raising productivity, crowding in private capital and improving living standards.”