Spring Statement: Businesses Remain Cautious on Government Growth Ambitions

Wednesday 26 March 2025

Karim Fatehi OBE, Chief Executive of the London Chamber of Commerce and Industry, said: “We welcome today’s statement from the Chancellor but remain cautious about the government’s broader ambitions for economic growth and need to see more support for the great British businesses that create jobs.

“The Government’s determination to help young people into work is welcome, and we remain supportive of the Chancellor’s commitment to supporting builders, not blockers across our economy through changes to the National Planning Policy Framework and support for airport expansion. The Government must now commit to supporting Luton Airport’s DCO submission to urgently drive growth in the region.

“Despite the government’s recent commitments, London businesses are grappling with challenging business conditions due to geopolitical instability and tax rises in the recent Budget. We support the Government’s work to stabilise the national finances, as stability is vital for business and investor confidence, however we need to see more ambitious pro-business policies to drive investment, job-creation, and growth.

“Our recent survey of London businesses found that tax increases in the autumn Budget and increased regulation from the Employment Rights Bill are knocking business confidence and resulting in lower pay increases, hiring freezes, and even businesses moving abroad. 85% of businesses we surveyed, mainly SMEs, believe economic growth is unlikely under the current government if things don’t change.

“It is therefore critical that the government takes a proactive and collaborative approach, in particular at the spending review later this year, working closely with London businesses to achieve our shared goal of economic growth. London is in the engine room of economic growth across the UK, and what’s good for London is good for growth across the entire UK.”

ENDS