Boosting Britain's business and trade is key to the Government's growth agenda
Last month's budget launches a decade-long plan to fix the foundations of our economy and society, laying strong foundations for growth and modernising infrastructure while maintaining fiscal stability. With a focus on investment, innovation, and support for key sectors, the Chancellor’s budget sets the stage for sustainable prosperity, giving businesses the tools they need to compete and to thrive after so many wasted years and devastating economic mistakes under the previous government.
The government’s commitment to over £100 billion in public investment over the next five years goes beyond a quick economic boost – it is a historic investment in long term growth. Key infrastructure projects like HS2 and the TransPennine Route Upgrade are designed to ease transit and trade, connecting regions and supporting efficient supply chains. This massive investment also includes £500 million in affordable housing, ensuring that stable, affordable homes form a vital part of economic resilience and community growth.
Driving innovation is key to building an economy that can compete in the future. That’s why innovation took centre-stage in this budget, with £20.4 billion allocated for research and development by 2025-26. Support for green technology and advanced manufacturing, particularly in electric vehicles and aerospace, promises high-value returns while preparing the UK for future industries. Substantial funding in the electric vehicle sector, for example, aims to establish the UK as a leader in clean energy and sustainable industry. These commitments will attract investment, create high-skill jobs, and align the UK with the global shift toward clean energy solutions.
As a long-term advocate for the UK’s SME sector and for investment in our town centres and high streets, it was clear to see that the Chancellor shares my view that small businesses play a crucial role in the UK economy, especially in our local communities. This budget’s reduction in business rates and the small business multiplier in England protects local shops and high-street businesses from inflationary pressures. The Scottish Government’s record on protecting our high streets is woeful, and this is a model for them to follow.
After 14 years of reckless economic mismanagement by the Conservatives and the disastrous Liz Truss mini budget, ensuring stability and balanced tax reforms is also key to repairing the foundations of Britain’s economic plan. Tax adjustments will help finance the government’s ambitious plans without deterring investment. The budget caps corporate tax at 25%—the lowest in the G7—creating a stable environment for businesses to plan long-term investments. The slightly increased Capital Gains Tax (CGT) rates maintain the UK’s competitiveness within the G7, fostering a fairer tax landscape that supports businesses and entrepreneurs while ensuring adequate funding for public services and positioning the UK as an attractive economic environment for both domestic and international businesses.
After 14 years of reckless economic mismanagement by the Conservatives and the disastrous Liz Truss mini budget, ensuring stability and balanced tax reforms is also key to repairing the foundations of Britain’s economic plan. Tax adjustments will help finance the government’s ambitious plans without deterring investment. The budget caps corporate tax at 25%—the lowest in the G7—creating a stable environment for businesses to plan long-term investments. The slightly increased Capital Gains Tax (CGT) rates maintain the UK’s competitiveness within the G7, fostering a fairer tax landscape that supports businesses and entrepreneurs while ensuring adequate funding for public services and positioning the UK as an attractive economic environment for both domestic and international businesses.
The budget also emphasises the importance of skills development, allocating significant funds for education and training. This aims to prepare future generations with in-demand skills, addressing labour shortages and aligning the workforce with industry needs.
Investment in workforce skills, particularly in technology and green sectors, is critical to delivering on the Government’s net-zero commitments but also on the significant national energy infrastructure projects that are coupled with green energy and growth.
This foundation supports businesses’ need for skilled talent, ensuring the UK remains competitive in a modern, evolving economy. Education and training are devolved matters in Scotland and the Scottish Government must follow the Chancellor’s lead in these areas to ensure Scotland is not left behind – particularly those in Scotland’s oil and gas sector.
The budget’s commitment to sustainable trade and Brand Scotland’s international reputation supports the UK’s position in a global economy increasingly focused on environmental responsibility. Incentives for electric vehicles and adjustments to Air Passenger Duty encourage eco-friendly practices while ensuring economic growth. Free trade agreements emphasise a strong, outward-facing trade policy that benefits exporters and supports green goals. The sustainable trade framework encourages British businesses to adopt green practices, attracting environmentally conscious consumers and investors and positioning the UK for success in a competitive global market.
This budget prioritises stability and long-term growth, avoiding short-term fixes and building a path for sustainable prosperity. By balancing tax rates, providing infrastructure investments, and supporting businesses, the budget lays the groundwork for economic resilience.
This plan for national renewal will transform the UK into a modern, interconnected economy that supports business innovation, competitiveness, and sustainable success. For businesses, this budget isn’t just policy—it’s a transformative blueprint for growth over the next decade.
Gregor Poynton is a Scottish Labour Party politician who has served as the Member of Parliament (MP) for Livingston since 2024.
