British business bosses say Reeves’ focus on growth doesn’t fix problems caused by her Budget
British business bosses say Reeves’ focus on growth doesn’t fix problems caused by her Budget
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THE Chancellor’s focus on future growth doesn’t fix problems caused by her Budget, businesses insist. Rachel Reeves yesterday tried to swat away accusations she had talked down the economy, with upbeat claims she would kickstart growth. However companies want the hike in employer National Insurance delayed — which they say would be a quicker route to reviving growth.
![[Morrisons CEO Rami Baitieh in a supermarket holding oranges and lemons.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/copyright-peter-jordan-commissioned-sun-953112737.jpg?strip=all&w=960)
The Chancellor’s Plan for Change included a rehash of ideas including Heathrow expansion, a UK-style Silicon Valley between Oxford and Cambridge and confirmation of nine new reservoirs — announced in December by OFWAT. The British Chambers Of Commerce and other lobby groups welcomed the revival of large infrastructure projects amid hopes they will create a ripple effect across the supply chain.
![[Two men stand in front of a Rangers Football Club store sign.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/2020-rangers-refurbished-store-opens-600388629.jpg?strip=all&w=960)
But business leaders warned the boost could take years, while firms are already cutting jobs and investment after the Budget’s £25billion tax raid. Stephen Phipson, boss of Make UK, highlighted the “clear contradiction between implementing laudable measures such as planning reform and infrastructure investment whilst . . . applying a handbrake through measures which will inevitably reduce investment and freeze recruitment”.
Tom Beahon, co-founder of the UK sportswear brand Castore, said talks on longer-term projects were unlikely to immediately solve headaches created by the Budget. He said: “I’m an eternal optimist. "We are an international business and proudly British, but we are being disadvantaged against global peers because of the higher increase in costs.
![[People walking past a Lloyds Bank branch in London.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/136-high-street-bank-branches-967582990.jpg?strip=all&w=960)
