Chancellor saluted by CBI for new beginning

PLANS to turbocharge growth announced by the Chancellor on Friday have been described as ‘a new beginning’ for business after a rocky relationship with Ministers in recent years.

Rain Newton-Smith, chief economist at the Confederation of British Industry, welcomed what she said was a ‘step change’ in Government efforts to boost business investment that includes corporation tax cuts, planning reforms, low-tax enterprise zones and freeing up pension fund money for massive infrastructure projects.

Relations between business leaders and Boris Johnson were sometimes fractious due to conflicts over Brexit. The former PM was famously reported to have dismissed their worries over leaving the EU by saying, ‘F*** business’.

It was read as a sign that Johnson would do anything to push through a plan to exit the European Union, regardless of concerns raised by some businesses that it may hamper trade and reduce the supply of labour.

Newton-Smith said Kwasi Kwarteng’s sweeping Budget measures and a 2.5 per cent growth target were evidence that he recognised the need to ‘aim high’.

‘I think it is definitely a new beginning,’ she said. ‘This is a Government that is in a hurry to deliver some ambitious policies and an ambitious plan for growth. It’s a step change and a Government that is prepared to take some bold action.’

She added that many firms were still concerned about soaring business rates, the end of business rates relief and rocketing energy costs.