The trust factor: why Labour must deliver a Budget that people can believe in

This Wednesday, the chancellor of the Exchequer will unveil the new Budget. This Budget is more than a set of fiscal decisions — it is a moment to restore confidence and put this Labour government back on track. And it is a chance to reassert our Labour values and Labour vision for the country after what has undoubtedly been a turbulent first 18 months.

Trust is vital in politics. It is the trust of the public that gives a government the authority to legislate. And it is the trust of our businesses that will be vital in our drive for economic growth.

But over recent years, trust has been stretched thin: trust from the public, trust from business, and trust in the ability of political leadership to deliver stability and growth.

We all know the damage done to business trust through the debacle of the process of leaving the EU, Boris Johnson's “F*** business” attitude and the economically illiterate self-destruction of the Liz Truss mini-Budget. But if we’re honest, the strains of ending that failure have also damaged confidence between Labour and too many businesses.

That trust will not be rebuilt by slogans or short-term fixes. It needs to be earned. It starts with honesty — about priorities, about past failings, and about what the country needs now. So that begins by setting out how Labour values of fairness and action to deal with the cost of living and poverty are essential to the wider aim of economic recovery.

We need a Budget that tackles poverty, brings down bills, rejects austerity and restores business confidence. Without the consumer confidence that comes from families with more money in their pocket to spend growth will remain elusive.

That is why action on the cost of living is pro-business, but it isn’t enough. Without growth, we cannot fund public services, attract investment, or raise living standards.

Without growth we cannot end the Tory doom loop and bring prosperity back to people’s pockets. Every serious analysis reaches the same conclusion: long-term prosperity demands clarity, predictability, and a government willing to make choices that support enterprise and innovation.

That means demonstrating integrity — being upfront about what has gone wrong and clear about how it will be put right. Businesses have been left dealing with a sense of policy instability, and of competing priorities. Ultimately both voters and businesses will have benefitted from decisions this UK Labour government has made.

The tragedy is the failure to project confidence and communicate those changes have left them feeling uncertain. But if we do not act to increase business confidence, then we will be stuck in the doom loop of speculation, timidity and short-termism that holds our economy back.

That's why this Budget must draw a line under the missteps of the past and put the emphasis on growth. And it is through delivering economic growth that we will be able to enact the social policies that Labour was elected to deliver.

I know in Scotland, the need for change is clear. Our NHS is on its knees, public services are creaking under the pressure and our economy has flatlined. Fundamentally, we need a change of government in Scotland to end this.

Scotland faces a £1bn shortfall caused by the failure of the SNP to match the economic growth we have seen in the rest of the UK.

In place of a “can't do” SNP government, we need a “can do” Scottish Labour government that understands business and acts to unlock our economy. I've already laid out my plans to simplify business rates and drive regional economic growth as first minister.

But it is essential for the good of Scotland and all of the UK that all of our policies are supported by economic growth on a UK-wide level.

Scotland needs a renewed politics rooted in energy, ambition, and a laser focus on economic growth – and so does the rest of the UK. This is what this Budget must deliver.

The country cannot afford another period of uncertainty. The Budget must demonstrate that lessons have been learned, that integrity matters, and that those in charge understand the urgency of rebuilding trust with both the public and the business community.

A stronger society needs a thriving economy backed by dynamic and confident businesses. This is the test on Wednesday: will this Budget restore confidence and set out a credible path to growth? Nothing less will do.

Anas Sarwar is MP for Glasgow Central and leader of the Scottish Labour Party