CBI responds to Chancellor's Mansion House speech

Rain Newton-Smith, CBI CEO, said: 

“Using her first speech as Chancellor at Mansion House, Rachel Reeves has set out a compelling vision to put the UK’s financial services sector on a path to drive growth across the wider economy. In challenging and uncertain times for the world economy, rebalancing regulation to encourage responsible risk-taking and innovation is essential to maintaining both the competitiveness of the sector and economy at large. With innovative companies, deep capital markets, and world-leading expertise, the UK has all the ingredients to deliver sustainable growth. By combining reforms that mobilise capital at scale with reforms that support a healthier attitude to risk-taking, the Chancellor is fostering the conditions for investment and innovation that our economy vitally needs. 

“And with COP29 underway, the government’s commitment to making the UK a global hub for sustainable finance represents a strong signal of leadership on the international stage. From implementing the recommendations of the Transition Finance Market Review to consulting with industry on transition planning, these actions will help support a whole-economy transition in the UK and catalyse sustainable investment.  

“But these reforms, while a significant step forward, cannot be viewed in isolation.  Many businesses are facing a triple whammy of rising costs – in the form of NICs, the national living wage and the Government’s Employment Rights Bill, which hampers their ability to invest, grow and take risks.  So, while the Chancellor is right to focus on mobilising finance through putting pension reform, capital markets and sustainability at the heart of the government’s growth mission, unlocking investment also needs competitive and profitable businesses.    

“Government will need to work closely with the business community in developing its industrial strategy and rebuilding confidence, to ensure the UK can deliver the higher level of sustainable economic growth critical for driving up living standards for all.”