WIREDGOV

Our response to Shadow Chancellor, John McDonnell’s speech at the Labour Party Conference in Brighton.

John Cridland, CBI Director-General, said:

“The Shadow Chancellor was strong on intent but has not yet provided great detail on how he intends to deliver his plans. The overall impression of this speech was of rather more intervention in the world of business and the economy.

“What’s clear to us is that you can’t be pro-growth and pro-jobs without being pro-business. And a thriving private sector is essential for raising living standards and paying for high-quality public services.

“We share the aim of seeing more people getting into higher-paid jobs but pay rises need to be sustainable and affordable - and based on rising productivity.

“Mr McDonnell talks of working in partnership with businesses and entrepreneurs, and recognises the importance of deficit reduction, infrastructure, and skills. But this is best achieved by liberating entrepreneurs to create wealth and jobs.

“Most companies pay the right amount of tax and in the last financial year business paid £174bn into the Treasury - singling out individual companies from the podium is not the best way of signalling a partnership approach with business. 

“We welcome the commitment to the Bank of England’s independence but it remains to be seen what active monetary policy really means. There’s a risk that when the economy is close to full capacity intervening in monetary policy could increase economic volatility, push up inflation and raise borrowing costs for households and businesses.”