Our reaction to Shadow Chancellor's speech - Labour Party Conference

Rain Newton Smith, CBI Chief Economist, said:

“It’s hugely welcome to hear Labour describe itself as pro-business. This represents a significant shift, signalling that the party views business as part of the solution and not a problem to be solved.

“This can be seen in its recognition of the damage caused by the outdated and outmoded business rates system, which acts a drag on investment and a barrier to firms seeking to go further and faster on decarbonisation. And the proposed green investments send the right signal at the right time. This is something business can get behind, as are commitments to sound public finances, incentivising investment and promoting entrepreneurship.

“While the diagnosis is right, some of the prescription requires a second opinion. For example, acting in isolation on digital services tax could risk undermining hard won progress on an international agreement. And we need to recognise, not simply criticise, the important role played by public service providers across the UK.

“Whether on employment or taxation, firms are keen to work with Labour on their proposals to ensure they don’t hamper growth, which is the best way of raising living standards for everyone, everywhere.”