CBI Chief Executive, Rain Newton-Smith gives growth speech to Said Business School

Speaking at the University of Oxford’s Said Business School, CBI CEO Rain Newton-Smith outlines a bold vision for UK economic growth, emphasizing the need for business confidence, strategic investment, and a competitive global outlook.

Following discussions at the World Economic Forum in Davos, Newton-Smith  highlights the shifting global economic landscape and warns that in the coming years “there may be tension among the established big trading blocs… and pressure to fall in behind one or more. But we must not.” She says that we must not listen to the “siren call of protectionism” as “engagement is always better” and the UK has key advantages in sectors like AI, financial services, and green technology, positioning it as a strong player in the global economy.

With global competition intensifying, she argues the UK must act swiftly to secure its place in the future economy. Newton-Smith’s message to government is that “Confidence matters. Investment matters. We must project the UK as a world leader in trade, innovation, and economic growth.”

Key priorities include:

• Boosting Business Confidence – Reducing business taxes, reforming planning laws, and creating a pro-investment environment.

• Strengthening Global Trade – Deepening ties with key markets, including the US, EU, China, and emerging economies like India.

• Emphasizing Sustainability – Committing to net zero while leveraging the green economy’s rapid growth.

In a speech to academics and business leaders, Newton-Smith says on:

Boosting business confidence that “The Chancellor’s speech last week was a much-needed down payment on the long-term sustainable growth this country needs. For too long, vital supply side projects have been gathering dust on the desk of successive governments. Projects to reform planning, to expand renewable energy, to improve transport infrastructure. To unlock pension capital. Picking them up is the right move for business confidence…

“But remember – that’s against the backdrop of a business sector that is still seriously flagging, straining under the fiscal burden it had to shoulder at the Autumn Budget. A business sector that has seen its overheads increase and its headroom for investment squeezed. If we’re to get business investing, this must be only the start of a real confidence campaign. The warm words of the speech must be followed by real, measurable delivery…

“We need decisive action to drive growth and investment. We need a campaign that encourages businesses to invest, innovate, and expand, while ensuring government policies support rather than burden enterprise. By fixing our punishing business rates system – fast. By course correcting on the Employment Rights Bill – to make sure it doesn’t make it harder for firms to take a risk on hiring people. And by pledging not to add any more taxes to the burden already loaded on business."

Strengthening global trade that “We must project the UK as a world leader in trade, innovation, and sustainable economic growth. In the shifting geopolitics of 2025, that may not always be easy. In the coming years, we can expect pressure to divert our course. The growing siren calls of protectionism and climate scepticism. We must ignore them: they can only pull us onto the rocks. They are not sustainable for this country. And they are not sustainable for this planet…

“There may be tension between the established big blocs – the US, the EU and China. There may be pressure to fall in behind one or more. But we must not. Engagement is always better than protectionism – or sticking our heads in the sand. Today we face a host of global challenges that no country or economy can tackle alone. Not only climate change and the energy transition but declining health outcomes and ageing populations. With challenges of this magnitude, our economies must stand together, or they will fall alone.

“So, when it comes to China, we must be practical. Yes, let’s recognise the security concerns. But full decoupling from China is not realistic and it is not right. It does not sit with our commitment to free and fair trade. And it does not sit with our need to answer the global challenges of 2025.”

Emphasizing sustainability that “despite the shifting global tides, the climate science has not changed. The threat of inaction has not changed. And the pace of advance in green technologies has not changed…

“Electric vehicles are still a $500bn global market. In some countries EVs are more than half of new car sales. Net zero is still one of the fastest-growing sectors in our economy – at 9 per cent in 2023, according to CBI Economics. There does not need to be a contradiction between net zero and economic growth… though there may be trade-offs and nuances on the journey.”