UK Industry Resilient but Needs Support to Thrive

The growth of the UK economy is delicate, but Chancellor John Healey recognizes the resilience and untapped potential of UK industry. He is determined to provide support to ensure that every start-up receives the necessary backing to succeed and grow. However, larger businesses also require assistance to thrive.

Recent surveys conducted by the CBI, the British Chambers of Commerce (BCC), the Office for National Statistics, and Make UK highlight the key challenges hindering businesses and the support they are seeking from the government. The primary concerns for business leaders are high employment costs and taxation. According to Make UK, nine out of ten manufacturers believe that employment costs pose the biggest threat to growth in the upcoming year. Many are calling for a reevaluation or reversal of the national insurance rule changes implemented by Rachel Reeves.

The British Chambers of Commerce (BCC) has found that the increase in costs for small to medium-sized enterprises (SMEs) has been a long-standing issue, but the situation has worsened in recent years. Since 2016, the policy-driven costs for a typical SME have surged by over 70%, with a quarter of this increase occurring since the autumn 2024 Budget. The Confederation of British Industry (CBI) estimates that businesses paid a total of £345 billion in taxes in the 2025-26 fiscal year, marking a 12.7% increase from the previous year.

It is evident that businesses are struggling with rising costs and taxation burdens, which are impeding their growth and competitiveness. The government must address these challenges and provide the necessary support to enable businesses of all sizes to thrive and contribute to the economic recovery. By listening to the concerns of industry leaders and implementing targeted policies, the government can help unlock the full potential of UK industry and drive sustainable growth in the long term.