Budget: Small and Medium-sized Businesses

Lord Fox Excerpts

Thursday 27th November 2025 Lords Chamber

[Lord Livermore (Lab)]

I am very grateful to my noble friend for what he says about the action we took to help scale-up businesses in the UK. As many noble Lords will know, the UK is already a great place to start a business, but our companies are not scaling at the same rate as their US peers and raising less at later-stage investment. As a result, UK companies are either acquired, fail, or choose to go abroad to raise that investment. We will change that and make the UK the best place to start, scale and stay, because today’s fast-growing firms are tomorrow’s engine of jobs and growth. We are doubling the eligibility of our enterprise tax incentives, investing billions of pounds in public capital and delivering reforms to boost the attractiveness of the UK markets, making sure that those companies can access the capital and the talent that they need to succeed in the long term.

[Lord Fox (LD)]

My Lords, I am sure the Minister and I will agree that the best way of helping businesses of all sizes is for there to be growth—meaningful growth—over the period. Given the words of the OBR boss, Richard Hughes, this morning on the “Today” programme that none of the measures in this Budget will lead to growth, it is very clear that the OBR does not rate the trade deals, investments in Heathrow or any of the measures as delivering growth over the period covered by the Budget. Where will the growth come from?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. The OBR has upgraded Britain’s growth forecast for this year from 1% to 1.5%, reaching the same conclusion as the IMF, the OECD and the Bank of England, which have already upgraded their growth forecasts. We were the fastest-growing economy in the G7 for the first half of this year, and we are on course to be the second fastest for the year as a whole. He is right that the OBR has looked back at the previous decade and concluded that policies such as austerity and Brexit have weakened the economy more than previously thought, and that assessment then directly impacts its view of GDP for the remainder of the forecast period, but the past does not have to determine the future, and we will go further and faster with our growth mission. We are cutting inflation and cutting borrowing every year of the forecast so that interest rates can keep falling, giving businesses the confidence to invest; we are maintaining public investment to build critical infrastructure; and we are backing our fastest-growing companies. We beat the growth forecasts this year, and we will beat them again.