Author: Rav Hayer, managing director, UK and Ireland, and head of BFSI, Europe at Thoughtworks

The UK government needs to prioritise tackling its structural productivity crisis, because failure to do so risks undermining long-term growth and widening the fiscal gap.

Otherwise, broad-based tax increases or ad hoc measures could harm investment, stifle innovation and reduce the UK’s attractiveness for top talent.

We expect targeted tax measures, such as capital gains tax reforms for founders and charges on professional partnerships, to help address the £20-30 billion fiscal gap.

Simultaneously, the government must accelerate reforms to the pension structure, compelling domestic DC schemes to funnel capital into high-growth UK technology and infrastructure assets.

Crucially, they must protect R&D tax credits and maintain competitive conditions for tech companies, ensuring the UK remains a destination for innovation-led growth.