Autumn Budget: Stability Will Be the Benchmark

As I reflect on the Government’s latest Budget, one thing is clear: It will be judged by its impact on stability. For investors and businesses alike, stability is not just a desirable outcome, it is the foundation upon which growth is built.

The question every potential investor is asking is simple: Has the UK become more investable after this Budget? Because without that confidence, the much-needed growth we all seek will remain elusive.

Recent data from Barclays tells us that 80% of businesses are ready to invest if the Budget supports their ambitions. Yet, 36% - up 7% year-on-year - still cite uncertainty and lack of stability as their greatest challenge. Encouragingly, 8 in 10 business leaders remain confident about their prospects over the next 3–5 years. That optimism is a platform we cannot afford to squander.

Rain Newton-Smith of the CBI summed it up perfectly: “Stability is the only road to growth.” That means that announcements from the Chancellor must remove any lingering doubt that this government is pro-business. The narrative needs to shift decisively toward supporting enterprise, investors, and wealth creators. Confidence to invest is fragile, and the Chancellor’s message must land with clarity and conviction.

Our own recent Foreign Direct Investment (FDI) report reinforces this point: 46 of the 48 UK locations we studied have become more attractive to FDI. This is a positive signal, but it also underlines the importance of maintaining momentum. Stability and strategic certainty will determine whether this attractiveness translates into real investment.

With inflation falling and the Bank of England likely to lower interest rates, the value of every investable pound is increasing. While the government doesn’t set rates, it shapes the environment in which investment decisions are made. Measures such as relief on business rates could be a powerful lever - unlocking capital and giving businesses the confidence to act.

Encouragingly, the Business Secretary’s recent commitments to lower electricity bills for 7,000 British businesses and a sharper focus from the British Business Bank on the eight sectors identified in the industrial strategy, signal intent. His words resonate: “Actual growth comes from enterprise and wealth creation. We will build a pro-business, pro-wealth creation, pro-growth Britain.” The Planning and Infrastructure Bill, described as “probably the biggest thing we will do this parliament,” could further embed that ambition.

The UK’s Modern Industrial Strategy, launched earlier this year, promised a new relationship between business and government - one that provides strategic certainty and backs British businesses. Today’s Budget must be the moment those ambitions start to take shape.

Ultimately, stability is the yardstick. If this Budget delivers it, investment will follow -and with it, the growth our economy urgently needs.