London businesses dismiss Chancellor’s growth hopes
Firms across London think the government will fall flat on its ambition to grow the UK economy, a new survey has shown.
Chancellor Rachel Reeves has set out to woo businesses in the City of London over the last few years.
But around nine in ten businesses across the capital doubt the government can achieve growth, according to research by the London Chamber of Commerce.
Some 70 per cent of firms said they did not even believe their own businesses would grow compared to last year.
The majority of 150 businesses surveyed also blamed Labour government policies stifling output.
The three main concerns cited were autumn Budget measures, lower-than-expected growth and the Employment Rights Bill – a “triple shock” that could send the economy into further decline.
The survey of 150 businesses in the capital is likely to be a final warning to the Chancellor as she prepares to deliver her Spring Statement on Wednesday.
Reeves is likely to make sweeping cuts to government spending in her bid to balance the books.
A reform to pensions may be one of the cards to be pulled out, with her speech at Mansion House last year suggesting she wished to overhaul the system to allow greater investment.
Companies said they were in dire need of some relief from the Chancellor as just five per cent of businesses said raising taxes would help growth.
Three quarters said the rise to capital gains taxes would have a negative impact on their income.
London Chamber of Commerce chief executive Karim Fatehi said the survey painted a “stark picture”.
“Businesses do not have confidence that the government can deliver economic growth if it continues along a road of tax hikes and employment regulation.”
“They should listen to businesses and urgently change course,” he added.