Autumn Budget can bring stability, but efficiency must drive public spending
The Autumn Budget is looming on the horizon, but while it will have big implications in many ways – one speech will not define the entire future for the UK. Amman Boughan, deputy chief executive officer at Pagabo Group, has commented ahead of the highly anticipated fiscal event – voicing optimism that a brighter future is within grasp if government investment is used effectively.
“Coming slightly later than usual, it feels like this year’s Autumn Budget has been a long time in the making – even more so than usual. With difficult decisions expected to be made by the government, speculation and apprehension have only intensified. As a result, day-to-day decision making has slowed down while the public and private sectors await a clearer picture of what the future holds.
“The situation was similar in 2024 ahead of the new government’s first Autumn Budget in power. However, the backdrop is different this time around, and momentum has been seen earlier in the year following positive announcements like the new 10-year infrastructure plan. As important as these fiscal events are, we cannot let them come in the way of continued growth and ambition.
“While there appears to have been a U-turn taken on increasing personal tax contributions, we can’t be sure until the chancellor delivers her speech on the 26 November. This taxation route is still better than targeting fringe taxes as the government did last year. Fringe taxation impacts a broad range of people and reduces confidence because nobody knows where the government will target next, and planning ahead becomes more challenging.
“Ultimately, I don’t think greater taxation is the answer to reducing national debt, but by targeting taxes that have clearer outcomes and leave everyone knowing where they stand works towards creating a level of stability, which is what many industries have been crying out for in recent weeks. With a clear, long-term commitment to infrastructure investment and a predictable tax policy, cost pressures can be eased and fiscal stability can be formed. Through increased clarity and confidence, we should see greater outside investment and growth – and history shows that stability drives sustainable growth – which is within reach.
“However, the long-term challenge is not the level of investment; it is the effectiveness with how that investment is deployed. Currently, too many sectors are slow, cumbersome and reactive. You don’t need to look hard to find high-profile projects that haven’t been delivered as planned, like HS2. What could and should have been a major infrastructure investment to improve regional connectivity, placemaking and opportunity will be remembered for none of those things.
“I like to use a simple football analogy when referring to the damage that poor investment decisions can make. It’s not always the teams spending heavily that are always winning; it’s the teams completing the best deployment of investments in playing roster, coaching and facilities – aligned with a clear strategy and effective management.
“The UK is not short on government investment; it’s lacking in successful conversion and meaningful outcomes. Looking at healthcare, defence and transport in particular at the moment, there is a huge amount of money being pumped in. If it’s not used effectively, we risk further borrowing and higher taxes again in the future. It’s a circular cycle, which we all have the collective responsibility of improving our own story.
“Procurement, one of our core areas within the Pagabo Group, can make a significant difference. Instead of taking a short-term view on things and prioritising price, there needs to be a greater focus on speed and quality. Because, buying cheap very rarely means delivering cheap – once the heightened whole-life cost is taken into consideration.
“The upcoming budget is important; there’s no doubt about that – but it can’t define our future. By working together, the government, public and private sectors all have an essential role to play in using the clearer landscape to make good decisions and drive growth. Our mentality should be focused on return on investment, not further investment.”
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