FIRMS SEEK CLOSE COLLABORATION WITH GOVERNMENT AS ECONOMY SLOWS DOWN

Last week, Chancellor Rachel Reeves delivered her first Mansion House speech. In it, she arguably set out a compelling vision to put the UK’s financial services sector on a path to drive growth across the wider economy. Boosting growth will be an uphill battle. The latest GDP figures show that the economy slowed between July and September, growing by 0.1% - down from 0.5% There’s still a lot of work left to be done to improve the trajectory of our economy.

These are challenging and uncertain times for the global economy. Given that context, it’s absolutely crucial to rebalance regulation to encourage responsible risk-taking, and to facilitate innovation. It’s the only way we can maintain both the competitiveness of the sector, and the economy as a whole. In theory, we have all the ingredients to deliver sustainable growth.

The UK boasts innovative companies, deep capital markets, and world-leading expertise. If we combine reforms that mobilise capital at scale with reforms that support a healthier attitude to risk-taking, we can improve the conditions for the investment and innovation our economy vitally needs. Reeves has made clear that she is keen to foster an environment that helps, not hinders our ambitions in this space.

And as world leaders gather in Azerbaijan for COP 29, the government’s commitment to making the UK a global hub for sustainable finance represents a strong 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, can’t be viewed in isolation. We have to face the facts. Many businesses, including here in East are facing a triple whammy of rising costs – in the form of NICs, the national living wage and the Government’s Employment Rights Bill. Taken together, they hamper firms’ ability to grow, invest, and take risks.

Reeves has decided to focus on mobilising finance through putting pension reform, capital markets and sustainability at the heart of the government’s growth mission – and she’s right to do so. But unlocking investment also requires competitive and profitable businesses.

It's clear that this government will need to work with businesses across the UK and here in the East of England in developing its industrial strategy and rebuilding confidence. That close cooperation, genuine partnership, will be key to ensuring the UK can deliver the higher levels of sustainable economic growth that are so critical for driving up living standards for all – benefitting business and wider society. Government and business share their ambition to get our economy growing. It’s time for us to combine our forces, rally and finally make that ambition a reality.