Chancellor Rachel Reeves has been called upon to implement "long overdue" changes to government spending, with the Confederation of British Industry (CBI) advocating for increased investment in innovation.
Reeves has previously expressed her readiness to "fight" for growth, however, top economists have sounded the alarm over a looming recession, as reported by .
The CBI has proposed that an economic surge could be triggered if the government commits to allocating 3.4 per cent of GDP towards research and development (R&D).
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According to data from the Office for National Statistics (ONS) released last year, total R&D expenditure for 2022 accounted for just under 2.8 per cent of GDP.
The business group emphasised the necessity of comprehensive reforms to skills and training funding as key drivers of growth.
It recommended that the government permit businesses to invest more of their contributions to the Growth & Skills Levy, which superseded a similar apprenticeships levy, into staff training.
Louise Hellem, the CBI's chief economist, characterised the upcoming Spring Statement as a "pivotal moment."
"To unlock sustainable growth we must move beyond discussions to accelerate investment through targeted innovation as well as policy and regulatory reforms," she stated.
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"With the right actions, the Spending Review can serve as a catalytic moment for hardwiring the Growth Mission into the heart of Whitehall. But for that Growth Mission to succeed government must inject business with a serious confidence boost."
The Confederation of British Industry (CBI) has urged Chancellor Rachel Reeves to pledge an increase in capital investment by £100bn over the next five years, aligning with its proposed ten-year plan for infrastructure and industrial strategy.
Following a series of surveys indicating a downturn in business confidence, the Spring Statement is anticipated.
Recent findings from one of the CBI's surveys suggest that companies are bracing for workforce reductions as predictions point to a decline in private sector activity from January to March.
The Resolution Foundation, ahead of the Spring Statement, has highlighted that the 海角视频's fiscal leeway has vanished, noting that current labour market statistics are akin to those typically observed during a recession.
In efforts to reshape public perception, Treasury officials have been engaging with leaders in the City and regulatory bodies.
Reeves has also been actively involved in discussions with top figures at fintech firms Revolut and Zilch, as well as representatives from the Financial Conduct Authority (FCA) and the Health and Safety Executive.
Prime Minister Keir Starmer, in a recent exclusive piece for City AM, outlined the government's mission to "bring back the animal spirits of the private sector" by targeting red tape.