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Theresa May seeks to repair strained relations with corporate Britain

The Financial Times
Britain's 10 most wanted suspected financial fraudsters will be identified as part of a crackdown announced by Theresa May © Provided by Press Association Britain's 10 most wanted suspected financial fraudsters will be identified as part of a crackdown announced by Theresa May

Theresa May will put billions of pounds of investment in infrastructure, science and research next week at the heart of an “unashamedly pro-business” agenda, as she seeks to repair strained relations with corporate Britain.

In her first important business speech, Mrs May will herald an Autumn Statement that will postpone a fiscal surplus until the early-2020s, while allowing targeted short-term investment to “get the country and business moving”.

Mrs May will use her speech to the CBI annual conference on Monday to reject concerns that she is ambivalent towards business, at odds with her chancellor and uncomfortable with the notion of Bank of England independence.

Chancellor Philip Hammond’s hands are tied by official forecasts of slower growth and investment following the vote to leave the EU that will leave the UK with a £100bn bill for Brexit within five years.

But in her warmest words about corporate Britain since becoming prime minister in July, she will say: “When the chancellor delivers the government’s Autumn Statement on Wednesday, he will lay out an agenda that is unashamedly pro-business.”

Mrs May’s rhetoric until now has often grated with business, whether promising to put workers on boards, highlighting corporate greed, or criticising “citizens of the world” as “citizens of nowhere”.

Business leaders have also complained that Mrs May’s government is not heeding their warnings about the danger of a “hard Brexit”.

Mrs May will announce that the Autumn Statement will contain a big boost for research and science, on top of an annual investment programme in new infrastructure expected to amount to low billions of pounds per year.

“We are ambitious for Britain to become the global go-to place for scientists, innovators and tech investors,” she will say.

She will also outline elements of the government’s industrial strategy, with more details to follow in the Autumn Statement.

Those policies have been demanded by the CBI, but Mrs May will argue that business must also support the government in allaying public concerns about globalisation, corporate behaviour and a concentration of wealth in the south-east.

She will call for a partnership to preserve capitalism, globalisation and free trade by reforming it, addressing the kind of concerns reflected in the Brexit vote and Donald Trump’s election as US president.

Mrs May’s team argue that her business speech and Mr Hammond’s Autumn Statement show that they are working closely as a team, and reject reports of tension between the two.

She will also pay tribute to the work done by “the independent Bank of England” to underpin the economy, a public declaration of support for governor Mark Carney after weeks of tensions with the BoE. In her Tory conference speech Mrs May criticised the “bad side effects” of the BoE’s loose monetary policy.

Mrs May’s team says there will be no “massive giveaways” in the Autumn Statement, but help for hard-pressed households known in Whitehall by the acronym “Jams” — people who are “just about managing”. 

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