Unlocking Economic Growth Without Tax Rises: Kentmere Solutions
Perspective on Rachel Reeves  Budget

By Conal Scholes,

The recent budget presented by Chancellor Rachel Reeves takes a Keynesian approach with
significant tax rises and public spending. While the aim to bolster healthcare, education, and
housing is commendable, the reliance on tax rises poses risks to business competitiveness
and economic growth. At Kentmere Solutions, we specialise in helping businesses unlock
potential through strategic interventions, making us uniquely positioned to propose
alternative solutions that align with growth-focused objectives.

Reeves has said she will defend her budget and a move to Keynesian economic theory and
claims no one has offered another solution plus she had no other alternative. Maybe she
learnt this while being an Economist in the private sector whilst at Halifax building society?
Or maybe she just pulled out the 2002 Blair & Brown playbook when they hiked NI to fund
the NHS.

Here’s how the alternatives we propose align with the interventions we champion, offering
a roadmap for business leaders and policymakers alike:

1. Deregulation and Cutting Red Tape

Proposal: Simplify regulations for SMEs to reduce operational costs and barriers to entry.

How Kentmere Solutions Helps:
We empower businesses to navigate complexity. By streamlining
operational structures and aligning processes with strategic goals, we help leaders cut
through bureaucracy, freeing up time and resources for growth and innovation.

2. Targeted Infrastructure Investment

Proposal: Leverage public-private partnerships (PPPs) to fund critical infrastructure
projects.

How Kentmere Solutions Helps:
Infrastructure extends beyond roads and bridges; it includes organisational infrastructure.
We assist companies in building internal systems that support scalable growth, ensuring
their operations are ready to seize opportunities created by infrastructure improvements.

3. Tax Incentives for Innovation

Proposal: Introduce or expand tax relief for R&D to encourage private-sector innovation.

How Kentmere Solutions Helps:
We help organisations foster a culture of innovation by aligning team capabilities with

business objectives. Our hands on approach with leadership to implement
strategies that encourage creativity and maximise R&D tax relief benefits.

4. Skills Development and Workforce Training

Proposal: Partner with industries to co-fund training and apprenticeship programmes.

How Kentmere Solutions Helps:
Investing in people is our bread and butter. By analysing skills gaps and implementing
tailored training plans, we ensure teams are equipped to thrive. Our workforce planning
strategies prepare businesses to attract, develop, and retain top talent.

5. International Trade and Investment Policies

Proposal: Negotiate trade agreements and attract foreign direct investment.

How Kentmere Solutions Helps:
Expanding internationally requires robust organisational structures. We support businesses
entering new markets by aligning HR strategies with international growth goals, ensuring
compliance and fostering cross-cultural team integration.

6. Dynamic Tax Adjustments

Proposal: Shift towards consumption-based taxes while reducing taxes on income and
employment, outside our remit but we like to think BIG!

How Kentmere Solutions Helps:
Our interventions in this area focus on optimising payroll structures and compensation strategies,
helping businesses adapt to changing tax landscapes. By ensuring employee satisfaction and
retention, we help companies maintain growth momentum. We also look at productivity, utilisation and cost control!

7. Digital Economy Expansion

Proposal: Support tech start-ups and invest in nationwide digital infrastructure.

How Kentmere Solutions Helps:
We specialise in guiding businesses through digital transformation. Whether it’s aligning
team structures for tech-driven growth or implementing change management strategies, we
ensure businesses harness the power of the digital economy.

8. Public Sector Efficiency

Proposal: Improve service delivery through performance-based management practices.

How Kentmere Solutions Helps:
Efficiency isn’t just for the public sector. We help businesses streamline operations and
enhance performance by creating accountability frameworks and fostering a results-driven
culture. These interventions save costs and drive better outcomes, yes you can have both!

A People-Centric Approach to Growth

 

At Kentmere Solutions, we believe that unlocking growth starts with people. The
alternatives outlined above provide a roadmap for stimulating economic growth without
burdening businesses with higher taxes. By focusing on reducing barriers, fostering
innovation, and investing in talent, both policymakers and businesses can achieve
sustainable growth, without just blaming the last lot in power (no matter how much they did wrong!).

In summary, while the Labour Party has, at times, pledged not to raise certain taxes, it has
also implemented tax increases when deemed necessary to fund public services and
address economic challenges. These decisions reflect the partys commitment to
maintaining and improving public services, even if it requires increasing the tax burden.

Kentmere offers a way to build a better organsational solution so these taxes are spent in a
way that generates growth and focuses on the areas of concern that businesses and wealth
creaters currently have. Interesting times eh!

If your business is grappling with the challenges posed by rising costs or planning for
expansion in uncertain times, let’s connect. Together, we can figure out the solutions that
drive long-term success.

#Leadership #Growth #EconomicStrategy #RachelReevesBudget #SMEs