Aldersgate Group reaction: The Chancellor of the Exchequer’s speech on growth

Rachel Solomon Williams, Executive Director at the Aldersgate Group, said: ““This speech correctly identifies many of the issues holding back UK economic growth – particularly a lack of certainty, which in turn has contributed to underinvestment. The Chancellor rightly said that net zero will be at the heart of future growth, and that the UK is uniquely placed to lead.

It’s now crucial that the government follows through with real change, enabled by policy. This includes working to ensure that the modern industrial strategy maximises the potential of low-carbon industry to drive growth. This can build on welcome new investments in electric vehicle infrastructure and solar supply chains, alongside measures to support further offshore wind development.

A reset in UK-EU relations will also be welcomed by business. Both parties have ambitious decarbonisation plans that will drive growth, and it will be important to secure alignment on key issues such as Carbon Border Adjustment Mechanisms in order to minimise reporting burdens and unnecessary costs for UK businesses.

Reflecting on the Chancellor’s comments on regulation and planning, Rachel added: “We disagree with the Chancellor’s assessment that environmental protection is obstructing growth. Nature is fundamental to the UK’s future prosperity, and ensuring that it is protected and restored as part of new development will generate economic growth, increase innovation and create jobs. We need to a create a level playing field which supports nature restoration alongside growth, offering certainty for the private sector through a mixture of policy, regulation and legislation. That includes supporting regulators to fulfil their roles efficiently so that they can take a streamlined, enabling approach. It also means ensuring that the public is effectively engaged on strategic and local changes as part of the planning process. Businesses across the country recognise this and want to see a system that rewards ambition and innovation in the private sector.”