Uncertainty is putting the brakes on Britain: Ad tycoon Sorrell says firms won’t invest in UK until ministers restore confidence
Companies will ‘go on strike’ and refuse to invest in the UK unless ministers restore confidence, says a leading British businessmen.
Sir Martin Sorrell, the boss of the digital advertising firm S4 Capital, praised the Government’s objectives to stimulate growth but has warned that uncertainty was holding the economy back.
Referring to the Chancellor’s mini-Budget, he told BBC Radio 4’s World at One: ‘I don’t think rates of tax necessarily determine whether people invest.
Warning: Sir Martin Sorrell (pictured)praised the Government’s objectives to stimulate growth but said uncertainty was holding the economy back
‘It’s certainty or uncertainty that makes them invest and the environment, partly as a result of his statement on Friday and what he said over the weekend that there might be other unfunded tax reductions, has created even greater uncertainty.
‘Uncertainty is the real issue and if governments can eliminate or reduce uncertainty they encourage investment.
‘If they increase it, and we have a whacking great communications gap at the moment – a sort of black hole in terms of communications – businesses will just go on strike.’
Sorrell said uncertainty would continue with Parliament in recess, the Conservative party conference coming up and no Office for Budget Responsibility forecast until late November.