BCC: Director General's Speech To Global Annual Conference 2025

Full text of speech by Shevaun Haviland CBE:

Good morning, again everyone, I think you would all agree that this is already turning into one of our most memorable Conferences in recent years.

Firstly, I want to say a huge thank you to the Prime Minister for taking time to speak with us today and giving us an insight into the Government's new Trade Strategy.

I would also like to extend our thanks to the Secretary of State for Business and Trade, Jonathan Reynolds MP, and the Minister for Trade, Douglas Alexander MP, for joining us here in the audience today.

The Trade Strategy sets out a clear, evidence-based approach to raising the UK's export game. 

It rightly targets our strengths in services, and vital high-growth sectors, while identifying key markets in the Indo-Pacific, Americas and Europe.

A focus on sectoral and digital trade deals is also welcome, alongside a commitment to a rules-based, open global trading system.

We applaud its ambition and focus.

Because, trade is at the heart of our unique Global Network.

Increasing the amount we export is the quickest and most efficient way to grow the UK economy.

It is essential if we are to achieve strong and sustained economic growth. Our collective Number One mission.

And that's the exam question we are asking today...

 ‘Where's the Growth'?

One year ago, when we last met here, we were one week away from a General Election.  Labour won with a pledge to achieve the highest sustained economic growth in the G7. 

But last year the economy grew 1.1%, and the British Chamber's forecast for 2025 is the same. That's not enough, it's not enough for growing wages and it's not enough for strong public services...

much more is needed...

That won't be easy. These are uncertain times. The foundations of the UK's economic stability have been repeatedly shaken. 

From the pandemic, war in Ukraine and energy crisis, to conflict in the Middle East and US tariffs chaos, business has been clinging on throughout this rollercoaster ride. 

So now is the time to steady the ship and put in place the building blocks that will support strong economic growth for years to come. 

As a critical friend of government, it's our job to raise concerns and present ideas, knowing they will listen, and they have. 

The Industrial Strategy has provided us with a clear vision to leverage the country's competitive advantage. 

Alongside the key growth sectors, the strategy sets out how we can integrate each region's strengths, across the UK's four nations.    

It also recognises how core issues such as energy, skills and finance, must be woven together into a single plan that can bring wider benefits for all.

And across the world, I see this government making strong advances by putting economic growth at the heart of its global diplomatic mission. 

It was a pleasure to host the Foreign Secretary at our Trade conference in March. His ground-breaking speech, announcing Ambassadors and High Commissioners as Presidents of their Chamber of Commerce, aligned the worlds of diplomacy and business - and was rightly applauded.

He recognised that we can only build the power of Brand Britain, in partnership.

So, I am delighted that we now also have a Trade Strategy to support this.

It has been a hard fight to get here. So many times, over the last four years, I saw politicians glaze over as I brought up my favourite subject for economic growth…trade.

They nodded along, took notes and then put their notepads in a desk drawer, not to be discussed until I appeared again.

But trade is now, rightly, the most fashionable word in Westminster. I'm back in fashion! 

In the space of three weeks, we saw the Prime Minister and his team sign three hugely significant trade deals with India, the US, and the EU.

The Government has acted, and businesses will benefit.

Billions will be added to the economy over the coming years because of these measures. 

The India trade deal means big tariff reductions for British car manufacturers, and opportunities to sell more products in the fastest-growing region in the world.

In the US, despite huge pressure, the Prime Minister answered our call, kept a cool head and clinched the first deal with President Trump. 

There's still a way to go to land the best deal for all sectors across the UK.

But while there are more hoops to jump through and challenges to overcome, the positive aspects cannot be understated.

Since the Brexit trade deal was signed in 2020, the BCC has been pushing for a better trading relationship with the EU.

So, it was great to be in No10 a few weeks ago to represent UK business after the successful UK-EU summit. This was the first, since Brexit, between a UK Prime Minister and the European Council and Commission Presidents.

Our scorecard for the summit – on our seven top priorities for businesses, we secured or made substantial progress on five. A great result!

This included 

• a security and defence pact - giving the UK greater involvement in the wider European defence supply chain
• The removal of paperwork and red tape for our food and drink companies; 
• And a dialogue on recognition of professional qualifications – to benefit our huge services sectors, from law and architecture to auditing and accountancy. 

Now come the hard yards of negotiations.  But let's recognise these steps towards a closer trading relationship – markets reopened, exports boosted and greater prosperity for everyone.

This government listened and acted. This is what a growth mission looks like.

And we will continue to campaign for global trade and promote Brand Britain, across our Chambers and around the world.

But, there's also more to do domestically. Because while trade is a source of strong economic growth, it is not the only component.

Business confidence is a crucial piece of the jigsaw. 

And the UK is bursting with opportunities!

When I visit Chambers across the UK, I hear businesses talking about their investment opportunities, their innovation, their appetite to grow.

This year, I steered a ship into the Port of Tyne and heard how 2,000 years of maritime history have evolved into one of the most advanced deepwater ports in Europe, amongst other things, servicing the largest offshore wind farm in the world at Dogger Bank....

I've talked to quintessentially British brands, like Wilkin & Son's Tiptree Jam, in Essex, where they have battled huge cost pressures yet are still innovating to produce world beating products.

But I also hear frustration, irritation and exasperation as the economy continues to struggle… 

The reality of British business is hard, it's relentless, it's knackering, it's being endlessly creative, its seven days a week....

and it's absolutely essential for the UK's future prosperity. 

So, it's not been helped by the Treasury demanding that business plug the black hole in its finances.

The size and scale of the rise in National Insurance Contributions took businesses by surprise.

We were unprepared for the huge burden placed upon us, and it led many of us to rethink our growth plans. As a result, our business confidence measures have fallen to their lowest levels since 2022. 

More worryingly, a third of firms we recently surveyed told us they have either made staff redundant or are considering it.

One third…think about the impact that will have on your local communities, and the economy. 

For the government to achieve its Growth Mission, people need to stay in work and businesses need to invest.

As always, businesses soak it up and move forward… but they feel like they are wading through treacle.

And this is not just about tax. The Employment Rights Bill is rumbling down the track with a £5bn price tag for business.

Yet, eight out of ten of you tell us you don't think the impact on business has been properly assessed by Government.

As responsible businesses who want productive employees, we recognise the need for strong workplace rights. 

But this government must hear our genuine concerns and act. Businesses look at this legislation and see a lack of balance, the balance of rights and responsibilities...

There are many key issues yet to be addressed and there must be a full plan for support and implementation.

And so... in this Global Context...

What did You say when we asked you...'Where's the growth'?

As business leaders you talk about barriers that stop you from investing and growing, but you also relish opportunities to thrive.

We asked 600 businesses - what policies would most boost growth in the UK over the next five years. You had six clear answers. 

Let's start with the barriers...

1. The cost of doing business. 

The government needs to use the tax system to incentivise growth, not kill it. 

Increased taxation is paralysing business. 

For example, one in five of our members say business rates are stifling growth. Over the course of this parliament, the Government must set a pathway to lowering the multiplier to at least 45p for all sectors. 

It should broaden its Tax Roadmap to include NICs, and consider how to lower the overall tax burden on businesses.

It's time to reduce the cost of doing business....

1. Regulation

Businesses want guiding principles to ensure they are operating appropriately, but too much red tape is an unnecessary burden. 

As the law stands at the moment, as a tenant in a block of flats, it is simpler to get permission to have a dog in your home than it is to get broadband. Yet making it easier to upgrade the UK's ultrafast broadband network could boost the economy by £66bn.

This is just one example that speaks to the wider problem of a regulatory system that hasn't kept pace.

1. Our people. 

Back in 1997, Tony Blair said ‘education, education, education'. 

The rallying cry for 2025 must be ‘skills, skills, skills'. 

Two thirds of businesses tell us they are facing skills shortages, and this is stopping their growth.

They tell us too many young people turn up at their doors without many of the core skills they need for the world of work. 

With almost a million people aged 16-24 not in work, education or training this must be fixed.

We need to bring the workplace into education and our young people into our workplaces before they drop out of the classroom....linking up the worlds of education and business like never before.

And so, what did you tell us are the opportunities for growth? 

1. Our Global Britain 

The government has listened and acted on resetting one of our most important trade relationships, with the EU. This must mark the start of our ambition to promote our country around the world.

Brand Britain is an incredibly powerful tool, and our politicians, diplomats and business leaders must all speak as one on selling our great country and driving inward investment. 

Let's use our new Industrial and Trade Strategies as our Manifesto for Brand Britain all over the world. 

1. Investment.

Invest to grow is the mantra for most business leaders. The same rule should apply to government policy. 

Government should unlock dormant funds to unleash investment in homes, transport, broadband, artificial intelligence and the green transition. 

We have pushed Government hard on publicly funded infrastructure as well as sign off to allow private investment – the impact on local supply chains and regional economies is huge. 

Investment in AI will also be transformative. 

The pace of technological change is speeding up, not slowing down. That's a real productivity opportunity. 

But SMEs need help to adopt AI to see the benefits. We can level the playing field for smaller business and connect traders globally. 

1. And finally, Government must use the Power of its Purse

It must buy British: We need government to keep its promise to boost British businesses through its infrastructure strategy, and to apply these rules to all areas of government procurement.

Get this right and we can inject billions into the economy. 

Taxpayers' money going back to taxpayers' pockets

These are just a few simple and clear ideas for government to take forward, to help drive our collective growth mission.

Today, we are unveiling our full Blueprint for Growth. It is now available to download through the conference app, please read it and let us know what you think.

And from here, we look ahead toward the thorny issue of the Autumn budget. 

Government finances are tight; the economy is not yet growing fast enough, and change does not happen overnight. 

But we cannot let firms pick up any more of the tax burden.  

That would ruin business growth and squeeze margins further. And if businesses stop growing then our entire nation will suffer. 

So, if there is one message I want government to take away it is this: 

 ‘There must be no further tax increases on business in the autumn budget.' 

Business leaders are resilient, but they are also flexible. 

Sometimes our well-thought-out business plans no longer meet our needs.  

When the facts change, so do we.  

And our government needs to take the same approach.   

If the UK economy is subject to any further economic shocks, such as a sustained spike in oil prices, then we need fiscal rules that are responsive and protect business investment.  

This government was elected with a mandate to be bold. The world may be in turmoil, but that mandate still holds and is more relevant now than ever.

An opportunity exists for the UK to build a platform for growth that can place it ahead of the pack.

And that is a responsibility that sits with every one of us in this room. 

There is huge Power in this Partnership – so when we ask Where's the Growth – the answer is ‘Here'.

It's down to us as Chambers, it's down to us as businesses and it's down to our partners in Government to seize this moment and make it work.

So, let's get Down to Business...

Thank you!