Chancellor Rishi Sunak, in a speech to the country’s top business leaders last night, called on businesses to increase investment in training and innovation to help reduce the cost of living.
Speaking to the Confederation of British Industry, Sunak said that while public investment was at its highest level since the 1970s, a lack of private sector investment was dragging down productivity.
“In this Parliament, we promise the government to increase public investment in research and development by 50 per cent to 22 22 billion,” he said.
“But business investment in research and development as a percentage of GDP is less than half of the OECD average. In other words, further action by the government can only take us this far. We need you.
“We need you to invest more, train more and innovate more,” he said.
Sunak reiterated its commitment to R&D tax cut reform to increase investment in areas such as education and training for workers, which he said were “the path to higher productivity, higher living standards and a more prosperous and secure future.”
His remarks came after inflation rose to nine percent last month, according to official figures yesterday, and now calls are mounting for the Chancellor to provide an urgent budget to alleviate the suffering of the family.
Speaking to Radio 4’s Today program this morning, CBI Director General Tony Danker said that Sunak needs to work now to tackle the rising cost of living and increase investment.
“You just have to be more discriminating with the help you render toward other people. Helping people with heating and food bills will not increase inflation, ”he said.
“You need to stimulate business investment now – it will not overheat the economy.”