The Autumn Statement will be delivered by the Chancellor of the Exchequer, Rachel Reeves, this Wednesday. Much of the speculation surrounding the budget proposal swirls around rising taxes and support for specific programs.
The Labour government inherited a challenging economy with declarations of a “fiscal black hole” in regard to tax revenue and spending, with a funding gap measured in the tens of billions of pounds.
Scott Dawson, CEO at DECTA UK – a payments Fintech, says that “drastic reforms” are needed tto be announced by the Chancellor.
The potential for a bigger economic downturn and the potential for businesses to be hit with higher costs could undermine new firms and the entrepreneurs that aim to launch innovative new ventures.
Dawson calls on the Chancellor to be “radical, clear, and consistent.”
“The UK has had a run of budgets that merely tweak existing systems to raise a penny here and penny there. We’re undoubtedly in an economic downturn and could be looking down the barrel of a market crash, so what we need this November are drastic reforms,” says Dawson. “Many businesses will be on high alert for increased costs, lower investment and the likelihood of becoming more dependent on private capital. This will not only risk those businesses already established but could easily discourage entrepreneurs that are thinking of setting up shop. In turn this could hinder the country’s ability to generate more revenue than is spent on services, and could ensure that the next world-beating UK business like Revolut or Monzo simply won’t happen.”
Dawson states that what the UK economy needs is consistency and a plan for significant change.
“A difficult economy and tough solutions are far easier to manage when the strategy is clear and dependable,” Dawson states.
He advocates for a balanced approach that fuels “massive investment” along with removing more red tape and regulations that harm business development and innovation.
“…it may be some as-yet untried economic approach that will allow businesses to start creating good-paying jobs again,” says Dawson. “Whatever it is, it will need to be radical, clear, and consistent.”