Rachel Reeves CBI speech live: Chancellor tells conference ‘difficult decisions’ brought stability to economy
CBI chief Rain Newton-Smith said that business had been caught ‘off-guard’ by national insurance hikes
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Your support makes all the difference.Rachel Reeves has told business leaders that she had not heard “many alternatives” to tax rises as she faces criticism for decisions made in the autumn budget.
Speaking at the Confederation of British Industry’s (CBI) annual conference, the chancellor insisted she had “drawn a line under the inheritance I faced” from the Conservative government and stressed “we’re never going to have to do a budget like that again”.
She added that the difficult decisions that were made would provide the “stability and platform we need to move forward”.
In a stinging speech earlier this afternoon, the CBI’s chief executive also warned that “tax rises like this must never again be simply done to business”.
Rain Newton-Smith said the said the measures announced last month have made it harder for businesses to “take a chance” on hiring new people and that employers were caught “off-guard” by the hike in national insurance contributions.
Taking to the stage this afternoon, Tory leader Kemi Badenoch accepted that her party had “lost the confidence of business” but said that Labour were repeating the same mistakes.
Meanwhile, the government has launched a crackdown on welfare benefits as the prime minister promises a ‘zero-tolerance’ approach to cheats and debate continues on the voluntary assisted dying bill due to be debated in parliament later this week.’
Businesses not ready to invest or grow in the UK, CBI chief warns
Rain Newton-Smith, chief executive of the Confederation of British Industry, told her organisation’s annual conference: “What really defines growth is the decisions made in boardrooms up and down the country.
“It’s CFOs (chief financial officers) asking, ‘can we afford to invest? Can we afford to expand? Can we afford to take a chance on new people?’
“Well after the Budget, the answer we’re hearing from so many firms is still ‘not yet’.
“The rise in national insurance, the stark lowering of the threshold, caught us all off guard.
“Along with the expansion and the rise of the national living wage – which everyone wants to accommodate – and the potential cost of the Employment Rights Bill, they put a heavy burden on business.”
Newton-Smith says firms were caught ‘off guard’ by national insurance hike
The head of one of the UK’s biggest business organisations has hit out at Rachel Reeves’ Budget, saying firms were caught “off guard” by the hike in national insurance contributions (NICs).
Rain Newton-Smith said the measures announced last month have placed a “heavy burden” on companies, with many now switching to “crisis containment”
She also criticised the changes to inheritance tax relief for farmers, saying it had left them “fearful” about the future.
CBI CEO says Budget has ‘made it harder for business to take a chance on people’
The CBI CEO has called for the government to work with the business industry to form an “elevated partnership”.
“Work with us together, let’s build that bridge together, we need to shift from consultation to co-design,” Rain Newton-Smith said.
“Tax rises like this must never just be done to business.”
She stressed that too many businesses were having to compromise on their plans for growth, and that the Budget had “just made it harder for business to take a chance on people”.
Economist says CBI CEO needs to be stronger in response to Budget
Independent business economist Andrew Sentance, who is a former CBI Director of Economic Affairs, says CBI boss Rain Newton Smith needs to be stronger in her response to the Budget, which has been unpopular among businesses.
He said on X: “We are being led to expect a critical speech on the Budget” From Ms Newton Smith. “She needs to be more hard-hitting than the CBI’s mild initial Budget response in October.”
Back then, she said: “This is a tough Budget for business. While the Corporation Tax Roadmap will help create much needed stability, the hike in National Insurance Contributions alongside other increases to the employer cost base will increase the burden on business and hit the ability to invest and ultimately make it more expensive to hire people or give pay rises.”
Keir Starmer reiterates plans for spiking to become specific offence
Sir Keir Starmer has reiterated plans for spiking to become a specific offence, as he hopes a change will give people “the confidence to come forward”.
The Prime Minister also laid out plans for venue staff to be trained in relation to spiking, with a pilot to begin within weeks before a wider rollout next year.
The Prime Minister made the comments in a meeting of police bosses, transport figures and hospitality executives in Downing Street on Monday morning.
Labour pledged in its manifesto to introduce a new offence for spiking, but there was no detail in the King’s Speech this year about a specific crime, though it promised to ensure an improved police response to cases.
Spiking is already illegal, but the commitment is to making it a specific offence. According to information published by the Metropolitan Police, spiking offences are covered by more than one law, but most come under the Offences Against the Person Act 1861.
Sir Keir told the meeting: “There are a number of measures that we are setting out this morning – we want to talk it through with you.
“The first is to make spiking a specific offence so that it counts, it’s reported.”
Ministers following own ‘moral code’ on assisted dying vote, says Jess Phillips
Senior Government figures opposed to the assisted dying Bill are following their own “moral code”, a minister has suggested, ahead of a vote on the law change this week.
Home Office minister Jess Phillips defended her colleague Shabana Mahmood, who made clear she would vote against the Bill in a strongly worded letter to constituents which emerged over the weekend.
She faced a backlash from Labour peer Lord Falconer for the public intervention, who suggested the Justice Secretary was motivated by her religious beliefs.
Members will be given a free vote on the issue, allowing them to make a decision according to their own conscience rather than in line with party policy.
The Home Office minister told Times Radio: “She (Ms Mahmood) will make the decision about how she votes on assisted dying on a matter of conscience, just exactly like I will.
“How she comes to that and what moral code she uses to come to that will be exactly the same as the moral code that I use to come to that decision as well.”
Ms Phillips added: “I think that Shabana is making a decision on what she thinks is best for her constituents, like every constituency MP.”
The minister said she would be backing the Bill, telling BBC Breakfast: “I am a person who fundamentally believes in the right for people to make a choice about their bodies.”
Bank of England deputy governor ‘worried’ that inflation will be higher
A deputy governor of the Bank of England has said she is “more worried” about the risks that inflation will be higher than expected as she called for a “gradual” reduction in interest rates.
Clare Lombardelli told a conference at King’s Business School there have been some signs of a slowdown in the reduction of wage inflation amid efforts to keep inflation sustainably at the central bank’s 2 per cent target rate.
Ms Lombardelli said: “I view the probabilities of downside and upside risks to inflation as broadly balanced.
“But at this point I am more worried about the possible consequences if the upside materialised, as this could require a more costly monetary policy response.
“The outlook for wages and services prices is unclear from here.
“This is why I support a gradual removal of monetary policy restriction and will be monitoring the flow of data over the coming months so we can calibrate our policy path as needed.”
Keir Starmer doubles down on benefits crackdown as he promises ‘zero tolerance’ on cheats
Keir Starmer has promised “zero tolerance” for benefits cheats as Labour seeks to tackle Britain’s ballooning welfare bill.
The prime minister warned those who try to “take advantage of state generosity will feel the force of the law” and that ministers would even “take cash straight from the banks of fraudsters”.
His vow came as ministers prepare to unveil “tough” changes to the welfare system later this week.
Read the full article here:
Starmer doubles down on benefits crackdown as he promises ‘zero tolerance’ on cheats
Labour work and pensions secretary Liz Kendall says young people who refuse jobs or training will lose payments, as prime minister warns of ‘bulging’ cost of welfare
Chancellor to say she has heard ‘no alternatives’ to tax rises
In the October Budget, Chancellor Rachel Reeves announced a nearly £70 billion uplift in public spending, partly funded by sharp increases in business taxes such as employer national insurance contributions.
Labour also raised the minimum wage, in a move praised by workers’ groups and unions, but which businesses have said will force them to pass on some costs to consumers, hire fewer people or make less profit.
In her speech, Ms Newton-Smith will point to a recent survey by the body which found almost two-thirds of companies think the Budget will damage UK investment.
The event is also due to be attended by the Chancellor, who is expected to take part in an onstage talk with Scottish Power chief executive Keith Anderson.
The Guardian reported Ms Reeves is expected to use the conference to say: “I have heard lots of responses to the Government’s first budget but I have heard no alternatives.”
Rachel Reeves to face criticism of autumn Budget tax rises at annual conference
Tax rises in the autumn Budget are undermining investment among UK companies, according to the head of one of Britain’s most prominent business groups.
Rain Newton-Smith, chief executive of the Confederation of British Industry, will warn in a speech on Monday that the measures announced last month have made it harder for businesses to “take a chance” on hiring new people.
However, Chancellor Rachel Reeves is expected to tell the group there was “no alternative” to tax rises as she holds firm against criticism of the autumn financial statement.
Speaking to the CBI’s annual conference in London, she will say: “Across the board, in so many sectors, margins are being squeezed and profits are being hit by a tough trading environment that just got tougher.
“And here’s the rub, profits aren’t just extra money for companies to stuff in a pillowcase. Profits are investment… When you hit profits, you hit competitiveness, you hit investment, you hit growth.”
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