CBI chief’s ‘low growth’ warning piles pressure on Chancellor over tax

The Confederation of British Industry (CBI) will today urge Jeremy Hunt to save the UK from ‘low growth and lost opportunities’ as he finalises his Autumn Statement.

It will pile further pressure on the Chancellor to ease the burden on businesses by making permanent a ‘full expensing’ tax break, which rewards investment but is due to expire in 2026. 

CBI chief executive Rain Newton-Smith will tell the organisation’s annual conference that it is time to ‘re-ignite UK growth and opportunity and our pride on the international stage through action to lift business investment and skills’. 

‘There is a consensus around the need to deliver sustainable growth that improves people’s lives today, and those of future generations,’ she will add. 

‘Don’t let the story of 2024, and the decade to come, be a UK story of low growth and lost opportunities.’

It is understood that Hunt is due to address the conference in London later. The CBI’s call comes after forecasts from the Bank of England suggested Britain is teetering on the brink of recession with zero growth next year.

That has fuelled calls for the Chancellor to revive the economy by cutting taxes, especially after reports suggesting he will have billions of pounds more in ‘headroom’ to spend than previously thought.

Hunt declared last week that Britain has ‘turned a corner’ as inflation has fallen to 4.6 per cent.