| Opinion By Sarah Glendinning Business needs a credible growth plan |
| After the turbulence of the past week, no one can doubt the importance of strong financial institutions in protecting and promoting the UK's attractiveness to investors.
As the UK seeks the sustainable growth needed to improve living standards amid the worst cost-of-living crisis in recent memory, it will be even more vital.
Events began with the new Government acting to help people and businesses weather the rising storm in energy prices. Helping the most vulnerable was the right thing to do, though better targeting will be needed to ensure support remains affordable.
Then came the Chancellor's anything but 'mini' fiscal statement. It should have been accompanied by an Office for Budget Responsibility (OBR) assessment; failure to do so undermined the growth plan itself and the credibility of our institutions, so it's good the Prime Minister and Chancellor met with the OBR, particularly if that means findings can be published on an accelerated timetable.
This matters, as the scale and nature of the tax cuts startled markets and led to a fall in the pound and rises in long-term interest rates. Many North East businesses I spoke with told me how important macroeconomic stability is for their investment plans. It's the bedrock for any growth plan. The pragmatism behind the rethink over the higher income tax rate can pave the way for delivery and stability.
* This is an abridged version of a Journal column from Sarah Glendinning, regional director of the CBI |
