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Employers urge PM Rishi Sunak to act urgently on growth reforms

Employers urge PM Rishi Sunak to act urgently on growth reforms

Employers urge PM Rishi Sunak to act urgently on growth reforms
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By Asmita Pant  Jan 23, 2023 11:45:30 AM IST (Published)

Tony Danker, Confederation of British Industry Director-General, praised Prime Minister Sunak for successfully taming the mini-budget crisis of former leader Liz Truss. However, he stated that Sunak is still unable to match the growth reforms of the United States and the European Union.

Britain is falling behind its peers in the race to spur economic growth and Prime Minister Rishi Sunak must act now to boost investment, fix a lack of workers and avoid chaos over post-Brexit rules, Reuters stated, citing a head of an employers group on Monday.

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Tony Danker, Confederation of British Industry Director-General, praised Prime Minister Sunak for successfully taming the mini-budget crisis of former leader Liz Truss. However, he stated that Sunak is still unable to match the growth reforms of the United States and the European Union.
Finance minister Jeremy Hunt is expected to announce pro-growth measures in a budget statement in March. However, Danker fears that the government might temper its reforms as 2024 elections draw closer. "If the government wants to reject using economic migration to fill immediate vacancies – something business disagrees with - then their labour market interventions must be the boldest in the world," he said.
Danker added that other countries were ahead of Britain in rolling out green investments in areas such as heat pumps, insulation, building retro-fits, electric vehicle charging infrastructure and carbon capture and storage. "We are behind them now and seem to be hoping for the best," he said.
After March 31, a two-year incentive will expire and firms will face a sharp rise in tax on profits prior to a sharp hike in investment levels. Danker reiterated the Confederation of British Industry's call for tax breaks to avoid another hit to investment levels.
Additionally, he stated that the government's plans to scrap all EU-generated laws by 2023 could threaten "chaos" in an industry just as it faces possible recession.
(With inputs from Reuters)
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