# UK needs to make politically unpopular reforms to boost growth, business group says
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-14
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: CBI urges politically unpopular choices for UK growth
Meta Description: CBI urges British government to make tough choices in immigration, regulation to spur business investment and growth. Learn more here.
URL: https://financedigest.com/uk-needs-to-make-politically-unpopular-reforms-to-boost-growth-business-group-sayshtml

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LONDON (Reuters) – The British government must be willing to make politically unpopular choices in areas such as immigration and regulation to boost business investment and economic growth, the Confederation of British Industry (CBI) said on Monday.

Finance minister Jeremy Hunt is due to set out a raft of spending cuts and tax rises at a budget statement on Thursday as he seeks to show Britain can fix a hole in its public finances.

The CBI said not matching those with measures to tackle labour shortages and productivity, at a time when many businesses are drawing up their 2023 budgets, would likely be damaging in the short and long term.

Changes to immigration, regulation and planning are now critical levers to get firms to [invest but will require the government to make political](https://www.financedigest.com/the-politics-economics-and-investment-implications-of-brexit.html "The politics, economics and investment implications of Brexit") sacrifices,” the CBI said, setting out a series of policy proposals which it acknowledged many in the governing Conservatives would find hard to support.

These include being more flexible on immigration including for occupations dogged by labour shortages, and adding student and [graduate visa](https://www.financedigest.com/uk-to-grant-visas-to-graduates-from-the-worlds-best-universities.html "UK to grant visas to graduates from the world’s best universities") routes and visas linked to specific economic projects.

It also [called on the government](https://www.financedigest.com/the-network-group-events-calls-on-the-government-to-invest-in-public-awareness-campaign-around-cyber-security.html "The Network Group Events calls on the Government to invest in public awareness campaign around cyber security") to streamline “the slow and inconsistent planning system”, and speed-up decision-making for major developments.

Hunt’s predecessor Kwasi Kwarteng and former prime minister Liz Truss had promised supply-side reforms to boost [growth but did not manage to set them out before being forced from office](https://www.financedigest.com/impact-com-appoints-new-chief-people-officer-to-lead-people-growth-and-excellence.html "impact.com Appoints New Chief People Officer to Lead People Growth and Excellence") by financial market turmoil sparked by their package of unfunded tax cuts and new public spending.

All of us [need to accept now that with fiscal](https://www.financedigest.com/does-the-us-economy-need-fiscal-stimulus.html "Does the US economy need fiscal stimulus?") and monetary policy tightening, we need many more pro-growth policies for our economy, if we’re to avoid a decade of no growth,” CBI Director-General Tony Danker said in a statement.

Danker said that if Hunt’s plan for [growth was only “warm words and aspirations” it wouldn’t stop businesses](https://www.financedigest.com/how-technology-can-support-insurance-business-growth.html "How technology can support insurance business growth") pulling back from investment.

It must [tackle the real barriers we face](https://www.financedigest.com/new-face-digital-tax-revealed-cartoon-dexter-digital-tax-advisor-launches-tackle-lack-awareness-new-legislation.html "New Face Of Digital Tax Revealed: Cartoon ‘Dexter The Digital Tax Advisor’ Launches To Tackle Lack Of Awareness Of New Legislation") right now,” he said. We [need to make the UK an attractive place to invest.”](https://www.financedigest.com/anyone-can-write-assignment-need-people-able-apply-new-skills-workplace-says-top-investment-management-company.html "“Anyone can write an assignment, but we need people to be able to apply their new skills to the workplace,” says top investment management company")

(Reporting by Kylie MacLellan; Editing by Gareth Jones)


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