CBI Warns Rishi Sunak against ‘Doom Loop’ of Public Spending Cuts

THE GUARDIAN: Director general Tony Danker says it is vital new UK PM does not pursue path of austerity

The head of the Confederation of British Industry has warned Rishi Sunak against pursuing an austerity “doom loop” of cuts to public spending and tax rises amid fears over a mixed outlook for the economy.

Tony Danker, the director general of the CBI, said it was vital for the new UK prime minister not to repeat the mistakes made by David Cameron’s Conservative-Liberal Democrat coalition when billions of pounds were slashed from public spending. “Let’s remember, the 2010s began with some austerity and were then ensued with very low growth, zero productivity and low investment, right? It wasn’t a successful strategy for growth,” he told BBC Radio 4’s Today programme. » | Richard Partington, Economics correspondent | Tuesday, October 25, 2022

No-deal Brexit 'Poses Threat to Global Stability' – CBI Head

THE GUARDIAN: Carolyn Fairbairn warns bosses at Davos that damage caused by disorderly exit could spread far beyond the UK

Fears are growing internationally that a no-deal Brexit poses a threat to the stability of the global economy, the head of Britain’s leading business body has warned.

Carolyn Fairbairn, director-general of the CBI, said the failure to sort out Britain’s departure from the European Union was damaging Britain’s brand abroad and had joined a list of systemic risks to the world economy.

Speaking at the World Economic Forum in Davos, Fairbairn said there was mounting concern at the potential for a no-deal Brexit to cause damage well beyond the UK. The CBI held a private breakfast for UK business leaders in Davos attended by the head of the International Monetary Fund, Christine Lagarde. The UK chancellor, Philip Hammond, will address a CBI lunch on Thursday.

Fairbairn told the Guardian: “At my meetings at Davos, there is a recognition that the causes of vulnerability of the global economy now include Brexit.” » | Larry Elliott and Graeme Weardenin Davos | Thursday, January 24, 2019