The Autumn Budget must sharpen the UK’s competitive edge to stay ahead of the pack in an increasingly dog-eat-dog world, the British Chambers of Commerce (BCC) has said.

The BCC called for immediate action to cut costs deterring investment, simplify regulations to unleash business potential, and update the country’s strategic offer.

Among the recommendations in a new report, the BCC urged ministers to commit to no further increases in taxes that add to labour costs; axe the windfall tax on oil and gas to address energy costs for businesses and provide a clear strategy for the North Sea’s transition to a renewable future; prioritise further infrastructure investment to support growth; and boost economic diplomacy to unlock the full potential of ‘Brand Britain’.

The report, produced by the BCC’s Global Britain Challenge Group, draws on expertise from businesses, academics, and think tanks. It highlights how the UK has fallen in global competitiveness rankings from the ninth-most competitive nation in 1997 to twenty-ninth today.

“If the UK economy is not competitive then it cannot grow. Our slide down the rankings has been driven by increasing volatility on tax and regulation which has led to an inexorable rise in the cost of doing business. There is also growing speculation about what’s coming in the Autumn Budget, which is still weeks away. But the Budget can be the decisive moment we need to back British business and put the economy on the front foot,” said Shevaun Haviland, director general of the British Chambers of Commerce.

This decline comes at a time when international trade has been upended, and geopolitical upheaval is prompting nations to reassess their strategic business alliances. Against this background, the BCC stressed that it is more important than ever for the UK to stand out from the crowd.

With more than forty recommendations in total, the report also calls for a revamp of business rates, a moratorium on new corporate reporting standards that could impact the UK’s investment appeal, and an annual audit of the country’s competitiveness.

“The UK is bursting at the seams with innovative ‘can-do’ businesses, that are eager to grow and make the most of the UK’s extraordinary talent, creativity and technical expertise.  Adopting even a few of this report’s recommendations will make a positive difference but delivering all of them would power the economic growth our people and businesses deserve,” Haviland added.

The British Chambers of Commerce (BCC) has urged the UK government to use the Autumn Budget to boost competitiveness by cutting investment-deterring costs, simplifying regulations, and scrapping the windfall tax on oil and gas.
It warned the UK’s global ranking has slipped from ninth to twenty-ninth and called for reforms to drive growth and back British business.

Fibre2Fashion News Desk (HU)

The latest survey showed a weaker gain in production, whilst new order book growth softened as tariffs continued to weigh on exports. Tariffs and broader policy uncertainty also dampened firms’ assessment of the business outlook, but expectations of manufacturing production reshoring and hopes of better demand in the year ahead meant sentiment remained positive overall, S&P Global said in a press release.

Cost pressures meanwhile were again elevated, with tariffs reportedly the dominant factor pushing up overall purchase prices. Whilst firms sought to pass on higher supplier costs to clients, competitive pressures and signs of faltering demand meant output charge inflation softened to an eight-month low.

The S&P Global US Manufacturing PMI slipped to 52 in September from 53 in August, indicating slower expansion.
Tariffs weighed on exports—especially to Canada and Mexico—and drove up costs, while production and new orders rose modestly.
Despite weaker demand, employment increased, and optimism persisted on reshoring prospects.
Selling price inflation eased to an eight-month low.

Weaker growth emanated from a slowdown in new order book gains. Although up for a ninth successive month, new orders rose only modestly and at a pace below the survey average. Exports were a source of demand weakness, falling overall for a third month in a row. Tariffs were reported to have weighed on export sales especially to Canada and Mexico.

A slowdown in demand growth led to weaker output gains in September. Overall output increased at a much weaker pace than August’s recent high. However, rising to a faster degree than new orders, production increased sufficiently for firms to add to their stocks of finished goods for a second month in succession.

Work outstanding declined at the fastest pace for five months, in part due to an expansion of labour capacity. September’s survey showed that employment rose solidly as firms filled vacancies and as part of business expansion plans.

A positive outlook also helped encourage manufacturers to take on additional staff, with several anticipating an increase in sales over the next 12 months. In some instances, tariffs were seen as driving an expansion of domestic focused industrial output.

The overall business activity expectations subsequently improved slightly compared to August. That was despite some ongoing uncertainty amongst the panel related to trade and wider federal government policies.

Meanwhile, tariffs continued to push up input prices during September, with vendors reportedly raising their charges. Although input cost inflation weakened since August, it remained elevated in the context of the survey history. High prices discouraged purchasing activity in September, which overall rose only slightly on the month. Where buying rose, this was linked to a desire to bolster inventories, in part due to tariff and supply-side uncertainty. Difficulties importing goods and stock shortages were again noted as driving average vendor delivery times higher in September.

Regarding manufacturers’ own selling prices, these rose at a noticeably slower pace in September as competitive pressures and slower demand growth weighed on company pricing power. Although still rising at a historically strong pace, output price inflation softened in September to its lowest level since January, added the release.

“US manufacturing production rose for a fourth successive month in September, but the upturn lost momentum as companies reported a drop in order book growth alongside a buildup of unsold finished goods inventories,” said Chris Williamson, chief business economist at S&P. “Despite a slowing in demand growth, many factories produced more goods, using up raw materials that had been stockpiled ahead of tariff implementation. This poses a downside risk to future production in the absence of a pickup in demand, though also hints at some alleviation of price pressures: there is already evidence of companies offering excess stock to customers at reduced rates.”

“A growing uncertainty, however, relates to supply chains, with September seeing an increase in tariff-related vendor delays, which threaten to curb production and push up prices if these difficulties persist or intensify,” added Williamson.

Fibre2Fashion News Desk (SG)