What to make of the 2025 budget

The upcoming budget on 26^th November is arguably one of the highest stakes fiscal events the UK has seen in years. With many commentators predicting a £20bn to £30bn black hole due to downgrades in productivity forecasts, any wiggle room the Government was counting on now appears to be in short supply. 

It has also been one of the most anticipated and talked about budgets in recent memory, with all eyes on the Chancellor as she sharpens her pencil and gets ready to make some tough decisions. 

So with potentially limited options, what can the Government do to reignite the growth mantra it was pinning its hopes on this time last year? 

Many business figures are calling for bold action. Maintaining the status quo and tinkering around the edges when the country is at such a pivotal point seems futile at best and reckless at worst. 

There is an understandable desire to stick to manifesto pledges. The Government is barely a year and a half old, and the promises upon which they were elected are fresh in the memory. 

However, circumstances change and the idea of an executive that can’t deviate based on new data does seem a little outdated. In the world of business, the only constant is change. Being able to react with agility to an unpredictable world is seen as a strength. 

But in politics, changing course is seen as a weakness – a decision that needs careful consideration and positioning. 

The country is in undeniably choppy waters, and navigating safe passage to calmer shores is the number one issue of our time. If this involves changing direction, and breaking a pledge or two, then so be it. Nothing is more important that the financial resilience of the country for the long-term. 

This time last year, I wrote for The Business Desk about the need to invest in growth. Major capital projects, such as those in the transport and infrastructure space, are one route to addressing the twin evils of low growth and low productivity. 

While a Government can’t rely on spending its way out of a crisis, targeted initiatives that will help drive the country forward should be top of the Chancellor’s list. 

The levelling-up agenda was all too often about a few million quid here and a new initiative there. This piecemeal approach, while popular in isolation, didn’t and won’t deliver the levels of change required to get Britain back on track. 

As a founder of a relatively young business, we have the ability to act in an agile way. This has perhaps been Yasper’sgreatest strength, allowing us to work on projects for organisations ranging from FTSE 100 companies to social enterprises. 

Governing with agility isn’t a new concept, and there is a lot of be said for certainty, procedure and predictability – particularly when looking to instil confidence in lenders and the markets. 

The Government has now been in place for 18 months and can hardly be called ‘new’ any longer. Frighteningly, we’re more than a third of the way through the electoral cycle. Meanwhile, the Labour Party enjoys the biggest parliamentary majority we’ve seen in a generation. If there were a time for bold action, it’s right now. 

Underlining the Government’s vision for the country and setting strong foundations for how that will be achieved over the next three years of this term is crucial. 

Breaking the mould of governing by textbook might deliver untold upsides and help break the strictures of a lacklustre economy – particularly against a backdrop of a weakening labour market, stagnation in hiring, and the unemployment rate creeping up to 5%. 

According to the Deputy Director of Public Policy at the British Chambers of Commerce, “Employers are being squeezed by sky-high employment costs, and we are beginning to see the consequences”.

Ensuring that growth generators are adequately looked after in the upcoming budget has never been more important, no matter what the ‘fiscal rules’ may say.