UK Business Leaders Push for Bold Budget Moves

In the UK, business leaders are urging Finance Minister Rachel Reeves to make tough decisions in the upcoming budget. The Confederation of British Industry (CBI) chief, Rain Newton-Smith, will criticize Reeves for not involving businesses in key discussions about energy costs and labor reforms. She will also push for a few significant tax hikes instead of many small ones that could harm the economy. The UK's economy has been growing slowly since the 2007-08 financial crisis. Reeves and Prime Minister Keir Starmer promised to change this when Labour came back to power in 2024. However, Reeves is expected to raise taxes by tens of billions to meet borrowing targets and increase welfare spending. She is unlikely to raise income tax but will increase other taxes. Newton-Smith praised the government's plans for industry, trade, and infrastructure. But she stressed the need for collaboration with businesses on energy costs and employment rights. She also warned that changes to pension schemes could make hiring more expensive for employers. Business Minister Peter Kyle announced a plan to cut energy prices by up to 25% for around 7, 000 manufacturers starting in 2027. Kyle said more actions would follow to address business concerns. However, Stephen Phipson of Make UK argued that the scheme needs to be expanded to have a real impact. Last year, large UK energy-intensive companies paid about four times more for electricity than US businesses. They also paid more than double what competitors in France and Germany paid, according to the International Energy Agency.