Reeves urged to use Budget to restore business confidence

The Chancellor must restore business confidence in the Autumn Budget, a Scottish business network has said.

The Scottish Chambers of Commerce (SCC) has published a letter to Rachel Reeves calling for her Budget next week to be a “turning point” for businesses across the UK.

The letter warns firms are facing a perfect storm of rising costs and policy uncertainty.

SCC’s latest economic survey found business confidence is declining across most sectors, investment intentions have been put on hold, and hiring costs are at record highs.

Liz Cameron, director and chief executive of SCC, said: “Firms across Scotland are ready to invest and grow, but a complex and costly policy environment is holding them back.

“We hear all too often that firms want to invest in their premises and people, but that the spiralling cost burden has seen investment intentions shelved.

“This Chancellor needs to make this Budget a turning point for businesses.

“The measures we’ve outlined will unlock investment, drive innovation, and create jobs in every region of the UK. Bold, evidence-led decisions today will secure growth and prosperity for decades to come.”

SCC has proposed a number of steps it is calling on the Chancellor to take, including creating a competitive tax and cost environment, securing energy investment, and prioritising infrastructure and skills for growth.

It is also calling for a reversal of the employer national insurance increase and reform of the energy profits levy.

Dr Cameron said: “The message from Scotland’s business community is clear: we’re ready to invest, innovate, and create jobs. Now we need a Budget that matches our ambition, and takes the necessary steps to restore business confidence.

“With the Scottish Budget due in January, we urge both governments to work together to deliver a settlement that unlocks the full potential of Scotland’s businesses.”

The UK Budget is due to be announced by Ms Reeves on November 26, with the Scottish Budget to follow in January.

A UK Government spokesperson said: “The Chancellor has set out the context for the Budget, recognising global and long-term economic challenges. It will continue to build the strong foundations to secure Britain’s future.”

The Scottish government has been approached for comment.