Economy has turned corner, Sunak tells first meeting of 2024 Business Council

Prime Minister Rishi Sunak hosting the first 2024 Business Council meeting (Daniel Leal/PA)

The Prime Minister has insisted the “economy has turned the corner” as he convened the first meeting of his 2024 Business Council.

Rishi Sunak labelled himself “unashamedly pro-business” as he delivered some short opening remarks to chief executives in Downing Street on Wednesday morning.

He acknowledged “global headwinds” affecting businesses, referencing disruption in the Red Sea – where violence by Houthi rebels has caused firms to redirect shipments – which is understood to be partly linked to recent tea supply issues.

But overall the Prime Minister was optimistic about the business sector.

It comes as Consumer Prices Index (CPI) inflation remained unchanged at 4% in January.

The figure is lower than the 4.2% that economists had forecast although still double the Bank of England’s 2% target, the Office for National Statistics (ONS) said.

The ONS is due to publish GDP figures for December 2023 on Thursday.

Addressing the Business Council – including heads of Rolls-Royce, ITV and Almac – Mr Sunak said: “I’m absolutely determined to make the UK the best place in the world to start to grow and invest in businesses.

“Of course we’re still battling with lots of global headwinds, not least the Red Sea at the moment, but at the start of this year I absolutely believe that the economy has turned the corner and we’re now pointing in the right direction.”

He continued: “Hopefully that’s something that you’re seeing in your businesses, but inflation has been more than halved from 11% down to 4%, mortgage rates are starting to come down.

“Everyone is predicting us to grow this year.

“I think PwC has said that we’re going to outperform France, Germany, and Japan this year.”

Prime Minister Rishi Sunak (centre left) hosts a Business Council meeting at 10 Downing Street, London — The meeting took place in Downing Street (Daniel Leal/PA)

The Prime Minister said that “because of all of that” the Government has been able to start cutting taxes.

Mr Sunak told attendees that business “defined” his life before politics.

He said: “I grew up in a small business family, worked for my mum, did her accounts.

“(It) defined my career before I entered Parliament, I obviously worked in investing and finance, investing in businesses, helping them grow, and scale and thrive.

“And obviously, it defined my initial time in government… as chancellor of the Exchequer working with many of you during the pandemic.”