London business chiefs are drawing up their own plan for the Government to boost the economy after accusing Chancellor Rachel Reeves of failing to “shift the growth dial” in her Budget.
They are setting up a Growth Commission to unshackle businesses in the capital to drive forward the UK’s economy.
The commissioners include representatives from major employers in the city including Deloitte, McKinsey, the London School of Economics, the Royal Albert Hall and Vodafone/Three.
Chancellor Rachel Reeves
PA Wire
The new forum is being launched by business group BusinessLDN and is expected to come up with a series of pro-growth recommendations by the end of February.
Announcing the commission, John Dickie, chief executive of BusinessLDN, said: “The Chancellor took welcome steps to shore up the public finances at the Budget, but Office for Budget Responsibility forecasts show this is not enough to shift the dial on growth.
“The UK risks experiencing another lost decade if action is not taken now to turn around our economic performance and unleash the private sector’s animal spirits.”
He added: “Doubling down on London’s existing strengths by addressing regulatory and other roadblocks holding the city back will be vital if the Government is to turn its growth ambition into action.”
The move by the London bosses came after the Office for Budget Responsibility increased its growth forecast for UK GDP for this year from 1% to 1.5% but cut its prediction for next year to to 1.4% and to 1.5% in all of the following four years.
John Dickie, Chief Executive, BusinessLDN
BusinessLDN
Ms Reeves insists that economic growth is the Government’s No1 priority despite £26 billion of tax rises in the Budget, and the £20 billion increase in National Insurance contributions for employers last year.
In her Budget speech, the Chancellor stressed that economic growth was “the best means to improve wages, create jobs, and support public services”.
How the DLR extension would cross under the Thames to Thamesmead
TfL
The Government is reforming the planning system to stop delays to housing and other projects.
The commission will be chaired by Helen Gordon, chief executive of homes company Grainger.
She stressed: “The UK is stuck in a low-growth rut and a key step to getting out is unlocking the full potential of London.
“This Commission will bring together unique cross-sector perspectives from across the capital as we develop an action plan to get the city’s economy firing.”
The London business experts will seek to identify barriers holding back the city, pro-growth measures, and how to boost investment and productivity.
