The Budget and COP26 mean its crunch time for the economy - Beckie Hart

These two events will not only define this Government and shape our economic recovery, but also dictate the future we hand down to our next generation.

The stakes are high, and there is no room for error.

This crucial period begins with the Comprehensive Spending Review and Budget on Wednesday. This is the Government’s big chance to get recovery back on track.

With the optimism of only a few months ago withering under pressures of labour, skills and stock shortages, and a pandemic that rumbles on, the real fear for businesses is of a growing tax burden.

Ministers must act to restore confidence and unlock investment, so firms can get on with the crucial business of creating jobs and driving growth. Tax rises now would stifle that ambition and send out the wrong message.

Government cannot underestimate the role of business in delivering on its ambitions – ambitions we all share. As we’ve seen from the Global Investment Summit and the long-awaited Net Zero Strategy, it’s clear Government knows that private sector investment holds the key.

That’s why pursuing a tax regime that penalises investment is the wrong course of action for all of us.

Quite simply, Government faces a choice: go for growth, or go back to tax and spend. It can’t do both.

But by sending the right messages at the Budget, Government can set the right tone for COP26 too.

Through decisions it makes at Budget, Government can act as market maker for green jobs. It can ease the way for a greater focus on green skills. And it can open the door to green investment by every firm, across Yorkshire and the Humber and beyond.

Take our business rates system as an example. It currently makes a mockery of our net zero commitments. When investment in energy-efficient measures can make firms liable for higher rates, it’s an absurd disincentive for them to act. It’s just not right.

Change that, and COP26 will have an audience of businesses more able – not just willing – to follow through on the inspirational and urgent messages they hear.

We know businesses are ready to embrace net zero. Some are already undertaking seismic efforts to drive change. But it is incumbent upon Government to inspire others to act too, by creating an environment which incentivises them to do so.

To encourage more firms, across every sector and up and down the supply chain, to act upon their green ambitions. And if every single business does something meaningful, we’ll have taken a big bite out of the challenge.

It’s why, in the run up to COP26, the CBI has been engaging with members to find out what they’re doing on the road to net zero, to share the lessons they’ve learned, to highlight the art of the possible and inspire a race to the top and we’ve got some great examples from our regional businesses to share with attendees both in person and virtual – the Yorkshire voice will be heard in Glasgow that’s for sure!

At the event itself, we’ll be hosting a number of events, discussions and webinars.

It’s important that we speak both to and for business, but also reach consumers. Whatever business does, we have to bring individuals along with us and show everyone that business is part of the solution.

As a business community we want to hold ourselves accountable for change, and really get into the substance of the issues facing our climate. That’s why we’re hosting four hustings’ events on sustainable finance, on clean transport, on the energy transition, and on the role businesses can play in protecting nature and biodiversity.

By bringing together leading experts from the business and stakeholder communities, we’ll raise the points and ask the questions that matter to secure progress at an ever-faster pace.

COP26 is an opportunity to spur a decade of action from businesses right across the country; action that can change the world. But without bold action at the Budget, a lot of this will be wishful thinking. Like an increase in business taxes as we seek to boost our recovery, that’s something none of us can afford.

By Beckie Hart - Regional Director, Yorkshire and the Humber, CBI

Support The Yorkshire Post and become a subscriber today. Your subscription will help us to continue to bring quality news to the people of Yorkshire. In return, you'll see fewer ads on site, get free access to our app and receive exclusive members-only offers. Click here to subscribe.