Rachel Reeves promises to ‘co-design’ policy with business group leaders

Rachel Reeves held talks with the leaders of some of Britain’s biggest business groups on Thursday, vowing to “co-design” Government policy with them ahead of the October Budget.

The Chancellor, who embarked on a major charm offensive with businesses while in opposition, said she would “continue the strong partnership” now that Labour is in Government.

Bosses at the British Chambers of Commerce (BCC), the Confederation of British Industry (CBI), the Institute of Directors (IoD), the Federation of Small Businesses (FSB) and Make UK were at the meeting.

Ms Reeves said: “Under this new Government’s leadership, I will lead the most pro-growth, pro-business Treasury in our history, with a laser focus on making working people better off.

“That can only happen by working in partnership with businesses, big, medium and small.

“I want to continue the strong partnership we built with business in opposition now we are in Government, to deliver on our shared goal of fixing the foundations of our economy, so we can rebuild Britain and make every part of the country better off.”

Bosses voiced their support after the meeting, but also hinted at the demands they made behind closed doors.

Stephen Phipson, chief executive of manufacturing trade body Make UK, said the meeting was “very welcome”, and called for “more detail on the delivery as well as vision”.

Shevaun Haviland, director general of the BCC, said the group “outlined our priorities for the autumn Budget, recognising the public finance challenge”.

Prime Minister Sir Keir Starmer warned of a “painful” Budget in October earlier this week.

He also said “things are worse than we ever imagined” because of a £22 billion “black hole” in the public finances.

Sir Keir said he found out last week that the Tories had borrowed almost £5 billion more than the Office for Budget Responsibility expected.

According to a Treasury announcement, Ms Reeves told bosses her door is “always open to valuable business insights on the opportunities and challenges they face”.

Tina McKenzie, FSB policy chairwoman, said the “diversity of UK businesses – 99% of which are the small, micro or self-employed that we represent – needs reflecting in Government policy-making”.

Rain Newton-Smith, chief of the CBI, added that she “welcomes” the promise to co-design policy.

Jonathan Geldart, director general of the IoD, added that Ms Reeves must design a “stable tax and policy framework needed to support business confidence and investment”.