The next prime minister of Britain faces a daunting challenge: lifting a crippling "cost of doing business crisis" that is stifling economic growth. According to the head of the British Chambers of Commerce, the government must shift its focus from taxing companies to backing them if it hopes to overcome this hurdle.
Shevaun Haviland, director-general of the British Chambers of Commerce, will deliver a stern warning to politicians and corporate leaders at the organisation's annual conference in London this week. Her message will be clear: further business taxes would be catastrophic and would destroy the fragile confidence that businesses have left.
The conference, which takes place against a backdrop of speculation surrounding Andy Burnham's potential entry into No 10, will feature a host of high-profile speakers, including Rachel Reeves, the shadow chancellor, and Andy Haldane, the Bank of England's former chief economist. Haldane has been appointed to lead the British Chambers of Commerce and is understood to be advising Burnham as he builds his policy platform.
Haviland will argue that the government's focus on economic stability and certainty is admirable, but it is not enough. She will call for a new approach that prioritises growth and gives companies the confidence to invest and innovate.
The warning comes amid a chorus of concern from business groups, who fear that the cumulative weight of taxation and regulation is eroding the investment needed to drive growth. Research has suggested that tax plans risk driving businesses overseas, a move that would compound rather than cure Britain's growth problem.
Haviland's message to the incoming prime minister is blunt: growth will not be legislated or taxed into existence; it must be earned by giving companies a reason to believe again. The challenge is clear: whoever leads the UK must grasp that a lack of confidence is undermining the country's ambition, ideas, talent, and ultimately, its growth.
The British Chambers of Commerce represents tens of thousands of companies through its national network of accredited chambers. Haviland's warning lands against a backdrop of mounting speculation surrounding the next leader of the UK, with Andy Burnham expected to enter No 10 in the coming weeks.
Businesses can only deliver growth if the environment they operate in gives them the confidence to act. And that is where political leadership can make all the difference. Haviland will repeat calls for co-operation between government and unions to stop the Employment Rights Act having a confidence-crushing effect.
The concern across the sector is consistent: that the cumulative weight of taxation and regulation is eroding the very investment the country needs. The next prime minister must grasp this challenge and shift the focus from taxing companies to backing them if Britain is to overcome its growth crisis.
The British Chambers of Commerce has long advocated for a more supportive business environment, and Haviland's warning is a call to action for the government to take bold steps to address the crisis. The stakes are high, but the reward is clear: giving companies the confidence to invest, innovate, and trade will be the key to unlocking Britain's growth potential.
