Industry chief warns ‘resilience not enough’ for growth

Britain's largest industry body boss warns that "resilience alone" will not spur growth in the UK economy ahead of the upcoming Autumn Budget. Shevaun Haviland, the head of the British Chambers of Commerce (BCC), has called on the government to reduce business costs. Haviland expressed concern that business owners are questioning the effectiveness of the Labour government's focus on building resilience.

"We need policymakers to stop adding to the cost stack and start taking layers away," she wrote in an exclusive City AM article. The BCC has recently highlighted the "cost of business crisis" in the UK, estimating that government policies such as the living wage, pension auto-enrolment, and employment taxes have increased costs for mid-sized businesses by over 75% in the past decade.

Firms are intensifying their lobbying efforts ahead of the challenging Budget under the new Chancellor, John Healey, who has pledged to address cost of living pressures, implement devolution reforms, and increase defence spending to 3% of GDP by 2030. The government's spending plans have raised concerns among industry leaders and investors, who fear potential tax hikes.

Despite these concerns, a Lloyds Bank survey found that over half of UK businesses reported AI had created new jobs, with 42% planning to invest between £100,000 and £250,000 in AI for workforce upskilling this year. Some industry experts have urged the government to prioritize AI as a "national workforce priority" to drive the UK economy forward.