Business confidence is at a three-year low and productivity has not improved for 15 years. It is businesses that policymakers must turn to – and fast – to get growth back on track, writes ICAEW chief executive Alan Vallance

Whatever your political leanings, we can all agree that the UK faces a challenging economic context. Weak global demand, persistent inflation and high borrowing costs are squeezing households and businesses alike. Productivity – the biggest driver of higher output and rising living standards – hasn’t improved for 15 years. With public finances under huge pressure, none of the options open to the Chancellor in November’s Budget are particularly palatable; it is obvious that the government faces tough choices about where and how to prioritise limited resources.

The key to unlocking this challenge is growth. Government and business are united on this. Yet while ministers rightly talk about the need for a growing economy and how it is the government’s central objective, the reality is that on a daily basis businesses are finding the prospects for growth really tough.

At ICAEW, we see this better than anyone. Our 170,000 members don’t just understand the economy – they shape it: 84........

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