UK businesses need investment-led growth to tackle fiscal risks: BCC

The British Chambers of Commerce (BCC) has urged the UK government to prioritise business investment, exports and productivity after the Office for Budget Responsibility (OBR) warned that public debt could climb to almost 300 per cent of GDP by 2075, raising concerns over the country’s long-term fiscal sustainability.Responding to the OBR’s latest Fiscal Risks and Sustainability report, BCC deputy director of Economics and Insight David Bharier said the UK’s fiscal options are narrowing as rising debt, growing interest payments and an ageing population increase pressure on public finances. He cautioned that further tax increases would carry significant economic trade-offs.

The British Chambers of Commerce (BCC) has called for policies that boost business investment, exports and productivity after the Office for Budget Responsibility (OBR) warned UK public debt could approach 300 per cent of GDP by 2075.
The BCC said weak business confidence, subdued investment and rising costs threaten long-term economic growth.

Bharier argued that stronger productivity is the only sustainable way to improve the UK’s fiscal position. He said business confidence remains weak, investment intentions are subdued, and firms continue to face mounting cost pressures, making the UK a more difficult place to operate.

He also criticised successive government policies, including the handling of Brexit and the 2024 rise in employer National Insurance contributions, saying they had failed to reflect business realities.

Citing the BCC’s Delivering Growth report, Bharier called for all government policies to be assessed on whether they boost investment, exports and productivity to lay the foundation for long-term economic growth.

Fibre2Fashion News Desk (CG)